The latest revision to earthquake-retrofitting laws and what it means for old apartments

What the latest revision aims to avoid - A collapsed building blocks the road after the 1995 Hanshin Earthquake in Kobe.

The revision to the law to promote earthquake-resistant repairs to buildings went into effect on November 25. This revision obligates the owners of large-scale buildings such as hotels and other institutions to undertake earthquake-resistant building inspections, of which the results will be made public. It also applies to buildings alongside designated major roads. In the event of a major earthquake, there is a risk that older, unsafe buildings could topple onto roads and block access for emergency service vehicles.

So what does this mean for apartments in ageing buildings?Read more


Former Taiyo Dept Store in Kumamoto to be demolished

Daiei Kumamoto Shimotori

The Daiei Kumamoto Shimotori Store (formerly the Taiyo Department Store) in Kumamoto City will be demolished next year. The building was the scene of a devastating fire in 1973 that killed 104 people and injured 120.

The 60 year old building opened in 1952 as the Taiyo Department Store. In its early days it was considered the best store in the city.

The store was closed for the next two years following the fire as the building underwent repairs. When it finally re-opened, 120,000 people visited on the opening day. However, the store never fully recovered from the incident and went bankrupt a year later.

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Second-hand apartment prices in central Tokyo up 35.4% from last year

According to REINS, the average price of a second-hand apartment sold in central Tokyo's 3 wards (Chiyoda, Chuo and Minato) was 50,870,000 Yen in November, up 4.1% from the previous month and up 35.4% from last year. The average price per square meter was 867,000 Yen, up 2.9% from the previous month and up 25.6% from last year. The average apartment age was 16.47 years and the average apartment size was 58.68 sqm (631 sqft). Read more


Fixed asset tax reduction on new homes may be extended

The government is considering extending the fixed asset tax reduction on new homes for another two years. Currently, the annual fixed asset taxes are halved for the first 3 ~ 5 years on new homes and apartments. Unless extended, the special tax relief measure is set to expire at the end of March 2014.

There are concerns about a slump in new home sales following the planned increase in consumption tax from April 2014. As a result, the government is looking at measures to counter-act any possible downturn in sales activity. Read more


Central Tokyo's first 5-storey wooden building completed

Ginza wooden building 4

Last month, Mitsui Home completed the construction of a 5-storey wood-frame building in Ginza.This is the second 2x4 wood-framed 5-storey building to be built in Japan, and is the first in central Tokyo. In April 2012, a 5-storey apartment building was competed in Setagaya-ku.Read more


Residential yields and vacancy rates in Minato-ku - December 2013

According to real estate listing site Homes, the average yield on an apartment in Minato-ku in December was 6.0%, up 0.2 points from last month. The average yield across Tokyo remains unchanged at 7.6%.

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

The average asking price of a secondhand apartment was 715,557 Yen/sqm as of December 1, up 1.34% from the previous month. The average asking price for land was 1,071,212 Yen, up 0.17% from last month.Read more


Market for secondhand apartments improving

The prices of secondhand apartments are moving on up. According to Tokyo Kantei, the average asking price of a 70 sqm apartment in greater Tokyo was 28,210,000 Yen in October, up 1.1% from the previous month. This was the first time in 8 months that the price had exceeded 28 million Yen.

Unlike new apartments, private sales of second-hand apartments are exempt from consumption tax (it is, however, charged on the brokerage fees). While the planned increase in the consumption tax rate may not directly impact the resale market, sellers are starting to see that the market is improving and are in less of a hurry to sell.Read more