Market Information – Page 123 – JAPAN PROPERTY CENTRAL K.K.

Apartment transactions down for 6th month

According to REINS, 2,938 apartments were sold across greater Tokyo in September, up 38.7% from the previous month but down 5.9% from last year. This is the 6th month in a row to see a decline from one year prior. The average apartment sale price across greater Tokyo was 27,500,000 Yen, down 2.5% from the previous month but up 3.6% from last year. The average price per square meter was 424,600 Yen, down 2.8% from the previous month but up 3.7% from last year. The average building age was 19.81 years.

1,425 apartments were sold in the Tokyo metropolitan area, up 42.1% from the previous month but down 8.6% from last year. This is the 6th month in a row to see a decline from one year prior. The average apartment sale price was 33,780,000 Yen, down 3.1% from the previous month but up 5.7% from last year. The average price per square meter was 568,200 Yen, down 3.3% from the previous month but up 7.6% from last year. The average building age was 18.72 years.Read more

by Zoe Ward

Office vacancy rates in September 2014 - Miki Shoji

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 5.65% in September, down 0.37 points from the previous month and down 2.25 points from last year. This is the first time since February 2009 that vacancy rates had dropped to the 5% range.

The 5% range is considered to be the tipping point between supply and demand. As a result, real estate companies have started to raise rents. Mitsubishi Jisho have begun seeking an increase of rent of around 5 ~ 10% in the 30 buildings they own in the Marunouchi and Otemachi business district in front of Tokyo Station. Mori Building have also started negotiating with tenants in relatively new buildings for higher rents. Mitsui Fudosan are also setting higher rents for new leases.

Meanwhile, office tenants continue to seek ways to control costs and mid-size and regional building owners are hesitant to raise rents. While vacancy rates have fallen sharply, rents are not increasing at the same speed.Read more

by Zoe Ward

Residential yields and vacancy rates in Minato-ku - October 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in October was 5.0%, down 0.6 points from the previous month and down 0.8 points from last year. The average gross yield across Tokyo was 6.9%, down 0.1 points from the previous month and down 0.8 points from last year.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 797,243 Yen/sqm as of October 1, down 0.9% from the previous month but up 15.9% from last year. The average asking price for land was 1,278,181 Yen/sqm, down 0.07% from the previous month but up 22.4% from last year.Read more

by Zoe Ward

Secondhand apartment prices in August 2014 - Tokyo Kantei

According to Tokyo Kantei, the average asking price of a 70 sqm (753 sqft) second-hand apartment in Tokyo’s 23 wards was 41,930,000 Yen in August, up 0.5% from the previous month and up 3.9% from last year. The average apartment age was 22.4 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 58,570,000 Yen, up 0.9% from the previous month and up 8.7% from last year. The average apartment age was 24.4 years.

The average price across greater Tokyo was 28,140,000 Yen, down 0.4% from the previous month but up 0.9% from last year. The average building age was 21.7 years.Read more

by Zoe Ward

August rental data - Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,561 Yen/sqm in August, up 0.1% from the previous month and up 0.5% from last year. The average apartment size was 59.71 sqm and the average building age was 19.2 years.

The average rent in Tokyo’s 23-ku was 3,166 Yen/sqm, down 0.3% from the previous month but up 2.3% from last year. The average apartment size was 56.65 sqm and the average building age was 17.5 years.Read more

by Zoe Ward

Office vacancy rates in August 2014 - Miki Shoji

Left: Nippon Life Marunouchi Garden Tower; Center: Nihonbashi Diamond Building; Right: Oase Shibaura MJ Building

According to Miki Shoji’s office report, the office vacancy rate in Tokyo’s five central business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) was 6.08% in August, down 0.18 points from the previous month and down 2.14 points from last year.

The vacancy rate in brand new office buildings was 18.17%, up 0.76 points from the previous month and up 0.24 points from last year.Read more

by Zoe Ward

Japan’s standard land prices up in urban areas, but continue to decline in regional areas

According to the MLIT, the standard land price (kijun-chika) across Japan’s three major cities of Tokyo, Osaka and Nagoya increased by 0.8% over the 12 months to July 1, 2014. This is the second year in a row to see an annual increase. In 2013, land prices increased by 0.1%. Residential land prices increased by 0.5% in the three major cities. This was the first time in six years to see an increase.

The nationwide average, however, fell by 1.2%. This is the 23rd year in a row to see a decline in land prices, although the rate of decline has shrunk (land prices dropped by 1.9% in 2013). Regional areas saw a 1.9% decline in land prices in 2014. This is the first time in 16 years that the rate of decline in regional areas has been as low as the 1% range. However, residential and commercial land values in regional areas suffering from declining populations have seen land prices drop further.

by Zoe Ward