Shinagawa data center to sell for 70 billion Yen
Sekisui House Reit has sold the trust beneficiary interest in the Gotenyama SH Building for 70 billion Yen (US$517 million), a 36% premium over what it was acquired for in 2014. The sale price exceeded its appraisal value by 13%.Read more
Tokyo's office vacancy rate improves 0.3 points in April
Tokyo’s office vacancy rate in April was 6.11%, a 0.3 point improvement from the previous month and a 0.27 point improvement from last year. The office leasing market is showing signs of recovery, and some companies are seeking to expand their office space.Read more
Negotiating the price on real estate in Japan
A question every buyer asks us is how negotiable is the price? The short answer is ‘it depends’.
Every single transaction is different, so there is not one-size-fits-all tactic to negotiating. In the current market, the majority of real estate transactions that take place in Tokyo sell at full asking price or at a minimum discount (somewhere between 0 ~ 3%). Some buyers get too obsessed with the percentage discount and miss out on properties that were already priced in line with the market, and even some great deals. If getting the biggest discount is your priority, you may end up buying something no one else wanted or something that was overpriced to begin with.Read more
CLT hybrid condo to go on sale in Shibuya
This June, Nomura Real Estate Development will start sales of a cross-laminated timber (CLT) hybrid apartment building near Sangubashi Station in Shibuya.Read more
Nationwide unwanted land donation scheme now in effect
On April 27, the Ministry of Justice enacted a nationwide unwanted land donation system in order to reduce the burden of rural, idle land on heirs. However, there are some strings attached that may limit how effective this system will be at reducing the number of vacant ‘akiya’ properties across Japan.Read more
Kyoto City's 'akiya' vacant home tax approved
Kyoto City’s plan to tax owners of vacant homes was approved by the Ministry of Internal Affairs and Communications in March, which means some ‘akiya’ or unoccupied homes will come with an additional annual tax. The new tax will not be imposed immediately - it may start in the 2026 fiscal year - and will not be applied to all vacant homes.Read more
Azabudai apartment building sells at 2% net yield
A 47-unit apartment building in Azabudai has been sold for 3.288 billion Yen (approx. US$24 million), 49% above its recent appraised value. This results in a net yield somewhere in the 2.2% range. Advance Residence Investment Corporation, a REIT operated by Itochu Corporation, will transfer the trust beneficiary interests to the undisclosed domestic buyer in July and August of this year.Read more