Vacancy rates for apaato-type buildings reach 30% in Tokyo

Vacancy rates in Tokyo and Kanagawa have been steadily climbing due to an oversupply of ‘apaato’-type rental buildings (low-rise blocks of rental flats usually built from wood or light-weight steel) in recent years.

According to TAS Corp, vacancy rates for wood-frame or light-steel-frame apartment buildings are over 30% in the greater Tokyo area, and as high as 37% in Kanagawa Prefecture. In other words, 1 in 3 units in ‘apaato’-type rental buildings are vacant.Read more

by Zoe Ward

Tokyo has its own Trump Tower

Tokyo has its own Trump Tower located about 12 kilometers outside of the city center, although the unassuming building may not live up to its Manhattan namesake.

Trump Tower is a rental apartment building located in Kamata, Ota Ward. It is a 3 minute walk from Keikyu-Kamata Station and 4 kilometers west of Haneda Airport.Read more

by Zoe Ward

Tokyo apartment asking prices in November 2016

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According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo was 35,470,000 Yen in November 2016, down 2.0% from the previous month but up 8.3% from 2015. The average building age was 22.5 years.

In the Tokyo metropolitan area, the average asking price was 48,090,000 Yen, down 0.9% from the previous month but up 5.7% from 2015. The average building age was 22.1 years.

In Tokyo’s 23 wards, the average asking price was 52,810,000 Yen, up 0.7% from the previous month and up 4.3% from 2015. This is the first time in 5 months to see an increase in asking prices from the previous month. The average building age was 22.1 years.

In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average asking price was 72,660,000 Yen, up 3.1% from the previous month and up 3.0% from 2015. The average building age was 20.1 years.

Read more

by Zoe Ward

Steep increase in house prices in central Tokyo

We are often asked how the Tokyo property market is moving. Is it slowing down or showing signs of steadying? We are still seeing some big price increases occurring, particularly in the detached house market. Compared to apartments, houses in central Tokyo are in extremely short supply and are difficult to find comparisons for, making it easier for sellers to ask bolder prices.

In some cases the properties have been given a quick makeover to justify a higher price, but in other cases the price has been increased to match recent market conditions.

Case 1: A 4-Bedroom house in the Azabu area

In mid-2016 we managed to negotiate a price of 180 million Yen for our client, who passed on the deal.  It was re-listed in December 2016 for approximately 240 million Yen, a 30% increase in 6 months.Read more

by Zoe Ward

Home loan interest rates to rise in January

In January, several of Japan’s major retail banks will increase the interest rates on their home loans.

The Bank of Tokyo-Mitsubishi UFJ will increase the prime interest rate on their 10-year fixed rate home loan by 0.05 points to 0.65%. This is their first rate increase in four months. Sumitomo Mitsui Trust Bank will increase their 10-year fixed rate by 0.05 points to 0.50%. Their 10-year rate reached a low of 0.35% in August 2016. Resona Bank and Mitsui Sumitomo Banking Corporation will increase their rates by 0.05 points to 0.90% and 0.85%. Read more

by Zoe Ward

Tokyo Apartment Sales in December 2016

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The following is a selection of apartments that were sold in central Tokyo during the month of December 2016:Read more

by Zoe Ward

Niseko luxury condominium/hotel opens this month

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AYA Niseko, a luxury ski-in ski-out condominium/hotel located on the Grand Hirafu Resort ski slope, opened its doors this month. The 79-unit building is already almost 90% sold out, with the final few apartments expected to sell over the ski season.

The majority of apartments were in the 88 ~ 90 sqm range and priced from 100 ~ 400 million Yen (approx. 850,000 ~ 3.4 million USD), while a 370 sqm penthouse, which has already sold, was priced at 600 million Yen (approx. 5.1 million USD). Apartment prices are similar to what can be found in central Tokyo.Read more

by Zoe Ward