Avoiding consumption tax increase too late for some
It may already be too late for some buyers looking to build their own home before the planned consumption tax increase next year. A last minute rush by buyers nationwide and a shortage in land and building materials means that some buyers will miss out on the current 5% tax rate.
A clause in construction contracts states that 'if the contract was signed at least 6 months prior to an increase in consumption tax, the tax rate applied at the time of hand-over will be the rate in effect at the time the contract was signed'. This means buyers must have their construction contracts signed before the end of September 2013 in order to lock-in the 5% consumption tax rate, otherwise they may be subject to the 8% rate which is scheduled to kick in on April 1, 2014.Read more
Skyz Tower in Toyosu to be a test of market conditions
With the total number of new apartments released for sale in May up 50% from last year, and a contract rate of 78.1% in greater Tokyo, there are strong expectations that Abenomics will lead to increased property values. Major banks increased their 10 year fixed mortgage rates for the second month in a row. With rising interest rates and an expectation of rising real estate prices, buyers are feeling added pressure to purchase.
Normally the summer season is a slow one for apartment sales, but with an expected increase in consumption tax next year the last minute rush from buyers is expected to continue throughout the summer. However, the recent correction in the stock market at the end of May might have cast some doubt over the chance of a prolonged recovery in apartment sales.
One new condominium that could be a barometer of market conditions is Skyz Tower & Garden in Toyosu, Koto-ku. Read more
New law changes voting rights in damaged buildings
In order to facilitate the demolition or reconstruction of buildings that are severely damaged in a disaster, the members of the Upper House have voted unanimously to revise the law which will reduce the voting rights required by apartment owners before a building can be demolished. Read more
Kengo Kuma to design new Shibuya Station area
On June 17, Tokyu Corporation and JR announced that internationally renowned architectural firm Kengo Kuma and Associates will be designing part of the new Shibuya Station area redevelopment.Read more
Kobe City to urge developer to protect Jonas Residence
The local assembly of the Kobe City Council have accepted a petition submitted by local residents fighting to save the former Jonas Residence in Kobe from demolition.
The property was recently purchased by a developer who has plans to demolish it and replace it with an apartment building. The developer has already postponed demolition until the end of June, but the committee will put pressure on the council to urge the developer to preserve the building or at least postpone demolition to a later date. Read more