Supply of new apartments in Tokyo shrinking

April 18, 2014Real Estate News,Market Information,All,Tokyo

According to the Real Estate Economic Institute, 4,641 new apartments were released for sale across greater Tokyo in March, up 75.1% from February but down 9.7% from March 2013. This is the second month in a row where the apartment supply has fallen below the level from last year.

Since Spring in 2013, demand for new apartments has exceeded developer expectations and supply is starting to run short. The current stock of 3,828 apartments at the end of March is about half of the normal level for greater Tokyo.Read more

by Zoe Ward

Akasaka Twin Tower demolition to begin next month

April 16, 2014Demolition,New Construction,Office/Retail News & Information,Real Estate News,Redevelopment & Reconstruction,All,Tokyo

Akasaka Twin Tower 1After several years of delays, Mori Trust will finally begin their redevelopment of the Akasaka Twin Tower buildings near Tameikesanno Station in Tokyo.

Taisei Corporation will begin demolition work of the 31-year old buildings in mid-May.

Read more

by Zoe Ward

Secondhand apartment sales in March - REINS

April 15, 2014Tokyo apartment pricesReal Estate News,Market Information,All,Tokyo

According to REINS, 3,994 secondhand apartments were sold across greater Tokyo in March, up 20.6% from the previous month and up 4.3% from March 2013. The average sale price was 26,650,000 Yen, down 1.0% from February but up 2.7% from last year.

The average price per square meter was 416,600 Yen, down 200 Yen from February but up 4.9% from last year. The average apartment age was 19.40 years and the average apartment size was 63.96 sqm (688 sqft).

The Tokyo Metropolitan area saw 1,983 apartments sold, up 20.9% from February and up 6.1% from last year. Read more

by Zoe Ward

Office vacancy rates in March - Miki Shoji

April 14, 2014Tokyo Office Market,Tokyo Office Rent,Japan Office Vacancy RatesOffice/Retail News & Information,Real Estate News,All,Osaka,Nagoya,Tokyo

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.70% in March, down 0.31 points from the previous month and down 1.86 points from March 2013. This is the first time since May 2009 that vacancy rates have dropped to the 6% range.

The vacancy rate in brand new buildings was 20.26%, up 0.61 points from the previous month but down 2.98 points from last year. Read more

by Zoe Ward

Former Kobe Sumitomo Building to be demolished

April 11, 2014Historic properties in Japan,Kobe CityDemolition,Historic Properties,Real Estate News,All

Former Kobe Sumitomo Building 1

The former Kobe Sumitomo Building in Kobe is going to be demolished this month.

Built in 1934, the 3-storey building was originally the Kobe branch of the Sumitomo Bank. It was a landmark in the former foreign settlement area around Motomachi.Read more

by Zoe Ward

Residential yields and vacancy rates in Minato-ku - April 2014

April 10, 2014Real Estate News,Rental Market,Market Information,All,Tokyo

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in April was 5.4%, down 0.1 points from March. The average gross yield across Tokyo was 7.2%, down 0.1 points.

The vacancy rate remains unchanged at 9.9% across Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 781,143 Yen/sqm as of April 1, up 0.1% from the previous month. The average asking price for land was 1,113,333 Yen/sqm, up 4.6%.Read more

by Zoe Ward

Developers struggling with rising construction costs

April 9, 2014Tokyo apartment pricesNew Construction,Real Estate News,All

Apartment developers are facing an impending crisis as construction costs continue to rise.

The average cost per apartment has risen almost 20% to 23 million Yen in the past year. Average construction costs per square meter are now around 300,000 Yen.

To make things worse, land prices are now starting to increase. Read more

by Zoe Ward