Residential yields and vacancy rates in Minato-ku - February 2014
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in February was 5.4%, down 0.4 points from January. The average gross yield across Tokyo was 7.4%, down 0.1 points the previous month.
Understanding the lifespan of a Japanese home or apartment
Are second-hand homes really that bad?
There is a common opinion in Japan that brand new homes are a safer and less risky purchase than pre-owned ones. But, all old homes were new at one stage. Whether they are new or old, all buildings will deteriorate over the years in some form or another.
The second-hand housing market can be referred to as a 'lemon market'. As described by economic George Akerlof in his 1970 paper 'The Market for Lemons: Quality Uncertainty and the Market Mechanism', there can be good used cars and bad used cars. Similarly, the second-hand housing market may contain well-maintained and cared for homes, but can also contain just as many neglected and defective homes. On the outside, they may all appear the same, but the 'rotten' homes out there destroy buyers' faith in the market and drag prices down.
Strong apartment sales in Okinawa
Okinawa is seeing high demand for new apartments, with real estate agents reporting properties being sold without any marketing and a severe shortage in stock levels.
All 338 apartment in Ryu:X West Tower in Omoromachi, Naha City, have sold out, and 90% of the apartments offered for sale in the East tower are already under contract. The two 30-storey towers contain 676 apartments. The West Tower was completed in September 2013 and the East Tower will be completed in 2015.Read more
Developer seeks to cancel contracts in luxury Aoyama apartment building after fault discovered
Mitsubishi Jisho Residence is currently in the process of cancelling sale contracts on apartments in The Parkhouse Grand Minamiaoyama Takagicho after a construction fault was discovered.
Just before Christmas in 2013, an anonymous post on an online discussion board mentioned that there had been some core drilling into the concrete. Drilling holes in concrete to take core samples usually indicates a potentially serious problem. Adding to suspicions, Mitsubishi removed the sales page for the project and removed any mention of the new building from their website a few days later. The building still had 3 apartments left for sale.
The message boards lit up with comments from concerned buyers who were desperate for an official response from Mitsubishi.
Ralph Lauren Building in Omotesando to be sold for 35 billion Yen
Mitsubishi Corporation have entered into final negotiations to purchase the Espoir Omotesando building for 35 billion Yen (340 million USD). The sellers - Secured Capital Investment Management, Orix and Trinity Investment - acquired the building in 2010 for 31 billion Yen. It was one of the biggest transactions in Japan that year. Read more
Daiwa House to demolish modernist building in Kobe
An example of Japan's pre-war modernist architecture is slated for demolition in February. The former Osaka Gas Shinkaichi Building in Chuo-ku, Kobe, has survived WWII firebombing raids and the 1995 Great Hanshin earthquake, but is unlikely to survive the urban redevelopment as it will soon be replaced by an apartment building. Read more