New apartment supply in first half of 2020 hits 47-year low
According to the Real Estate Economic Institute, the supply of new apartments across greater Tokyo in the first half of 2020 (counted from April to September) dropped below 10,000 units for the first time since record-keeping began in 1973. A total of 8,851 new apartments were released for sale, down 26.2% from the first half of 2019.
Secondhand apartment transactions in 3rd quarter reach 30-year high
According to REINS, the number of secondhand apartments reported to have sold across Greater Tokyo in the third quarter of 2020 reached the highest level seen since record-keeping began in 1990. A total of 9,537 apartments had sold between July and September, up 1.4% from the same period in 2019.
Quick real estate news summary for the week
Flood hazard maps stall, HOAs reconsider their management companies, and a new sub-letting law to be introduced this December. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Canadian firm to invest US$9.5 billion in Japanese real estate
On October 12, the Nikkei newspaper reported that Canadian investment firm BentallGreenOak (BGO) plans to invest up to 1 trillion Yen (approx. US$9.5 billion) in Japanese real estate over the next two to three years. The company is anticipating that corporations will start selling off their office and hotel real estate holdings as the global pandemic continues, creating buying opportunities.
US$600million+ resort condo development for Niseko
Another week, another multi-billion Yen project announced for Niseko. Singapore-based Shenning Investments is developing a luxury Capella-branded resort in Niseko’s Hanazono district with a planned opening in 2024 ~ 2025. The total cost of the project has not been disclosed but some have estimated it to be over 70 billion Yen (approx. 664 million USD).
Debt relief for homeowners could arrive in December
The Financial Services Agency (FSA) is firming up plans that would reduce or exempt home loan repayments for struggling borrowers. These are extraordinary measures that would apply to those who have been affected by the coronavirus pandemic and its economic impact, and help to prevent home foreclosures and personal bankruptcies.
Tokyo Apartment rents hit ceiling
According to Tokyo Kantei, the average advertised monthly rent of a condominium in Tokyo’s 23 wards was 3,845 Yen/sqm in September 2020, down 0.4% from the previous month but up 4.6% from last year.