Apartment affordability ratios across Japan in 2020
In 2020, the average price of a 10-year old second-hand apartment nationwide was 5.92 times the average income, according to a report by Tokyo Kantei. Housing has become more expensive compared to 2019, which had a multiple of 5.52.
Wooden buildings on the rise in Japan
Japan is starting to see more mid-rise buildings constructed from wood materials. A revision to the Public Buildings Wood Use Promotion Act will go into effect on October 1, 2021, encouraging the use of domestic forest plantations planted after WWII not only in public buildings but also in privately developed buildings.
An apartment in Shinjuku for 99 Yen a month?
Who said living in Tokyo was expensive? IKEA Japan is offering a furnished rental apartment in Shinjuku for just 99 Yen (US 86 cents) a month.
50-yr old apartment building in Shinjuku to be refurbished
A former luxury rental apartment building in Shinjuku is undergoing a full refurbishment. Rather than follow the standard practice of demolishing and rebuilding from scratch, the 50-year old building will be stripped back to its concrete structure, retrofitted and renovated.
New apartment supply drops 38% in October
The supply of brand-new apartments released for sale across greater Tokyo for the month of October was 2,055 units, down 38.8% from last year and down 11.1% from the previous month. Unsold inventory dropped 16.9% from last year to 5,376 units.
Home loan tax deduction may be reduced in 2022
The cash loophole from the 1% home loan income tax deduction is about to be closed as the government looks to revise the percentage down next year.
2021 sees continued demand for real estate in Tokyo
Although Tokyo’s office vacancy rate has been climbing for the past 20 months, institutional investors are not shying away from the nation’s capital. With vacancy rates on the rise and rents falling, real estate prices should typically decrease. However, in a low interest rate environment investors are content with lower yields and are paying more to secure prime real estate.