Homebuyer preferences change as pandemic continues, Nikko-branded hotel for Niseko, and Singapore funds see value in Japan’s logistics market. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
The population of the Tokyo metropolitan area as of November 1 had dropped by 7,358 from the previous month to 13,847,040 residents. This is the first time since 1993 that the month of November had seen a month-on-month decrease. Recent news articles have been pointing the finger at the work-from-home trend and an exodus to surrounding prefectures as the main cause of the decline, and while that may be the cause for some of the numbers, the same articles gloss over the startling outflow of foreign residents.
on November 26, the Japan Real Estate Institute (JREI) issued their most recent medium-term forecast for new apartment prices in Tokyo’s 23 wards. In 2020, the average price is forecast to be 1,071,000 Yen per square meter (approx. US$956/sq.ft). This is a slightly higher revision from their earlier forecast issued last year.
The Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) published their quarterly LOOK Report on November 19. With a survey point of July 1, this is the second report covering changes in land prices since the coronavirus pandemic took hold.
Apartment rents in Greater Tokyo reach new high, new apartment supply up 67%, home loan tax deduction could soon apply to smaller residences, and Niseko to implement limits on hot spring drilling. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
The historic former home of Tamanosuke Kume (1861-1931, a politician and civil engineer, will be relocated to a city-center location in Kume’s hometown of Numata, Gunma Prefecture. Demolition was initially scheduled to start on September 1, but the home has been spared thanks to the efforts of local preservationists.
On October 12, the Nikkei Shimbun reported that the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is considering making it legal to conduct part of the real estate sale transaction over video conferencing. Currently, the due diligence report, outlining all of the important details pertaining to the property, must be read aloud in person in front of the buyer before the purchase agreement is signed.
Nagoya Railroad, aka Meitetsu, has delayed the construction of a 400-meter long office tower for the Nagoya Station area citing high construction costs and a change in tenant demand as a result of the coronavirus pandemic.