Foreign developers caught by zoning regulations in Niseko

January 17, 2014Hokkaido,Hokkaido Real Estate,Hokkaido Hotels,NisekoReal Estate News,Redevelopment & Reconstruction,Hokkaido,All,Hotel News

Niseko Grand HirafuDevelopment in parts of Niseko's ski fields is being stalled due to inconsistencies between national and prefectural government building approvals.

In recent years, a number of hotels in Niseko have been purchased by foreign funds, closed down and in many cases demolished. The foreign developers acquired the hotels with the aim of building condominium-type hotels and resort apartments which would then be sold to wealthy foreigners.

However, a number of these sites have been sitting vacant without any signs of construction.

Why the hold up?Read more

by Zoe Ward

Tokyo office market in 2014

January 16, 2014Japan Office Rent,Tokyo Office Market,Tokyo Office Rent,Japan Office Vacancy RatesOffice/Retail News & Information,Real Estate News,Market Information,All,Tokyo

In 2014, the total office space expected to hit the market could amount to just half of the level seen in 2012. Meanwhile, vacancy rates are expected to continue their decline this year as companies shift to new offices and expand operations.

According to Miki Shoji, approximately 844,700 sqm of new office space is expected to be supplied in Tokyo's central five business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in 2014. This is a 4% increase from 2013, but is only half of the level seen in the last peak in 2012. Read more

by Zoe Ward

Land in Tokyo Disney Resort sold for 9.3 billion Yen

January 15, 2014Chiba Prefecture,Tokyo Disney ResortLand,Real Estate News,All

Oriental Land Co., Ltd. have acquired a 23,000 sqm site within the Tokyo Disney Resort for 9.3 billion Yen (404,350 Yen/sqm). The seller is the Dai-ichi Life Insurance Company - a major shareholder in Oriental.Read more

by Zoe Ward

Mizuho reducing home loan interest rates to 0.55%

January 14, 2014Interest rates in JapanReal Estate News,All,Home Loans / Mortgages

In an effort to attract borrowers looking to purchase before the increase in the consumption tax rate, Mizuho Bank announced that they will be lowering their prime interest rate on their 2-year fixed-rate mortgage from its current level of 0.95% to 0.55%. The ultra-low interest rate campaign will be offered until the end of March 2014. It is possible that other banks will soon follow.

Mizuho and two other banks have also lowered the prime rates on their 3-year fixed-rate mortgages to 0.60%.

Source: The Nikkei Shimbun, January 9, 2014.

by Zoe Ward

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

January 13, 2014average rent tokyo,Rental yield in TokyoReal 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 January was 5.8%, down 0.2 points from December. The average yield across Tokyo was 7.5%, down 0.1 points from the previous month.

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

The average asking price of a secondhand apartment in Minato-ku was 738,929 Yen/sqm as of January 1, up 3.27% from the previous month. The average asking price for land was 839,050 Yen/sqm, down 21.7% from the previous month. Read more

by Zoe Ward

What can cause an apartment's value to fall after purchase?

January 10, 2014Property Purchasing Guide,All

The following is a list of some negative factors that can cause an apartment's value to fall over time. Some of these points may impact resale value more than others. 

The negatives:

  • Proximity to unpleasant facilities. Eg. a cemetery, crematorium, place of adult entertainment, garbage incineration plant, gas tank, factory dealing with hazardous materials, sewage treatment plant, gas or petrol station, or a warehouse with large vehicles coming and going. Properties near something undesirable may be relatively cheap to begin with, and a buyer might think they can put up with the surroundings if it means they can get a good bargain. But what happens when they want to sell the apartment down the track? Are future buyers going to want to put up with the same thing, or will they also be expecting a bargain price? Read more

by Zoe Ward

Government plans to nationalise 280 uninhabited islands

January 9, 2014Japan IslandsReal Estate News,All

The Japanese government is embarking on a plan that could result in the nationalisation of 280 privately owned islands. 

A survey of 400 islands determined to be of importance to the protection of Japan's borders found that 350 were uninhabited. The identity of the owners of 280 of those islands is unknown. Under the civil code, land that has been abandoned and without an identifiable owner can revert to state ownership. Eg. in the case where the owner has died without any heirs. Read more

by Zoe Ward