Land prices up in 83% of locations - MLIT LOOK Report

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the land price movements across Japan for the third quarter in 2014 (July 1 ~ October 1).

According to the Chika Look Report, 124 locations (83% of the total) saw an increase from the previous quarter, and 26 locations (17% of the total) saw no change. For the first time since this survey began in late 2007, none of the 150 survey sites saw a decrease in prices. Of the 124 locations to see a price rise, 122 locations saw prices rise between 0 ~ 3%, while 2 locations (Ginza and Shinjuku 3 Chome) saw prices rise between 3 ~ 6%.

Strong investor demand caused by monetary easing, as well as demand for apartments in areas with convenient access have helped to sustain the price growth.

In greater Tokyo, 58 locations (89% of the total) saw land prices increase, while the remaining 7 locations (11%) saw no change. In greater Osaka, 30 locations (77%) saw prices increase, wile 9 locations (23%) saw no change. In Nagoya, all 14 locations saw prices increase.Read more


No bidders for Nara Dreamland

Nara Dreamland 2

The foreclosed Nara Dreamland amusement park in Nara City failed to attract a single bid when it was put up for public auction on November 11. The 297,000 sqm site was listed for sale with a minimum price of 730 million Yen (6.3 million USD). Although ten inquiries were received, no bids were made.

Too expensive?

With a minimum price of around 2,400 Yen per square meter, this might seem like an exceptional bargain when compared to the surrounding area, but the park is dotted with a number of overgrown and unsafe structures and rides which would require several hundred million Yen to remove.

The land is also subject to a number of strict building regulations that make redevelopment a difficult task. The land falls in an Urbanisation Control Area and current uses only permit welfare, sports, museum, zoo or school facilities. Approval from the prefectural governor is required before construction.

Housing, commercial, retail or hot spring development is not allowed. It is also within two kilometres of two UNESCO World Heritage Sites (Todai-ji temple and Kofuku-ji temple), which means the land is designated as a scenic and conservation zone under the Act for the Preservation of Ancient Capitals. As a result, building heights are limited to 10 meters, while building-to-land ratios are limited to 30%. Nara’s mayor said the city has no intention to provide any allowances on the construction regulations.Read more


Signs of life for vacant site between Daikanyama and Nakameguro

Kamimeguro 1 Chome Project 5

The large and vacant plot of land located between Daikanyama and Nakameguro may finally see some activity as the Tokyo Metropolitan Government and Meguro Ward have announced that they are seeking tenders from developers for the 8,500 sqm site.

The land was previously the site of lodgings for the Japanese National Railway Settlement Corporation (JNRSC). The property was acquired by the Tokyo Government and Meguro Ward in 1995 for approximately 6.4 billion Yen. Initial plans were for an aged-care facility and public housing.Read more


Minamiaoyama land sold for 13 billion Yen

Meiji Jisho, a company affiliated with Cerberus Capital Management, has sold a 1,916 sqm block of land in Minamiaoyama 3 Chome to Shimizu Corporation. The deal is estimated to be around 13 billion Yen (6,785,000 Yen/sqm). 

The land is currently a parking lot and fronts onto Aoyama Dori Avenue.

An adjoining 2,500 sqm site was sold by the Urban Renaissance Agency (UR) in March 2013 for 5.6 billion Yen (2,240,000 Yen/sqm). It was reported that the buyer was City Index Seven - related to the Murakami Fund. UR's landholding is more scattered with private roads and a smaller street frontage.

Read more


Land in Tokyo Disney Resort sold for 9.3 billion Yen

Oriental Land Co., Ltd. have acquired a 23,000 sqm site within the Tokyo Disney Resort for 9.3 billion Yen (404,350 Yen/sqm). The seller is the Dai-ichi Life Insurance Company - a major shareholder in Oriental.Read more


The Naked Island in Hiroshima for sale

Sukune Island Hiroshima 2Sukune Island will go up for public auction in February. The uninhabited island was featured in the internationally acclaimed 1960 film 'The Naked Island'. The director, Kaneto Shindo, passed away in 2012 and associates and fans of the actor are looking for donations to purchase the island to honour his memory.Read more


British Govt to return 20% of Tokyo Embassy land to Japan

British Embassy Tokyo 2The British Embassy in Tokyo is going to become a little smaller next year as the British government has decided to return a portion of the land. 

The embassy is sprawled across a 35,000 sqm (376,600 sqft) estate just west of the Imperial Castle in Chiyoda-ku. The land has been leased by the British government since 1872. The US and Spain are the only other countries that lease their embassy land in Tokyo from the Japanese government.

Read more