Year-on-year increase in Tokyo office rent for first time since 2008

Iidabashi Grand Bloom
Iidabashi Grand Bloom (left) and Park Court Chiyoda Fujimi The Tower (right)

According to Miki Shoji’s Office Report, the average office rent in Tokyo’s central five business areas (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in May had increased by 0.21% from 12 months prior. This is the first time since December 2008 that office rents had seen a year-on-year increase. It is also the fifth month in a row to see a month-on-month increase, indicating a turnaround in market conditions.

Landlord, Mitsubishi Jisho, have already hiked up the rent for some existing office tenants by 5 ~ 10%, and new tenants are being faced with rents that are 10 ~ 20% higher than they were in 2012.Read more

by Zoe Ward

Secondhand apartment prices in May - 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 41,740,000 Yen in May, up 0.6% from the previous month and up 5.4% from last year. The average apartment age was 21.7 years.

In central Tokyo’s six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average apartment asking price was 57,600,000 Yen, up 0.6% from the previous month and up 9.3% from last year. This is the 10th month in a row to see a month-on-month increase. The average apartment age was 21.7 years.Read more

by Zoe Ward

Real estate transaction volume up 72% in 2013

Real estate transactions in Japan saw a sharp improvement in 2013, with the total volume increasing by 72% from 2012 to 4.108 trillion Yen (40 billion USD). With expectations of improving rents, REITs and foreign funds have been more active in the market. There has also been activity from large companies moving into their own buildings as a means to keep rental costs down. The rise in transaction volume has been a driving force behind the recent  rise in land prices.

The annual volume, however, still remains below the peak of 6 trillion Yen seen during the mini-bubble in 2007. Following the Lehman Shock, or global financial crisis, in 2008, the market took a dive. By 2011, the transaction volume had dropped to 1.5 trillion Yen.Read more

by Zoe Ward

Secondhand apartment sale prices and transactions down from last month

According to REINS, 2,638 secondhand apartments were sold across greater Tokyo in May, down 5.3% from the previous month and down 14.2% from May 2013. This is the second month in a row where transaction numbers have fallen below levels seen 12 months prior. 

The average apartment sale price across greater Tokyo was 26,560,000 Yen, down 1.2% from the previous month but 3.3% higher than last year. The average price per square meter was 413,400 Yen, down 2.5% from the previous month but up 3.1% from last year. The average building age was 19.82 years.Read more

by Zoe Ward

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

Minato Tokyo yields June 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in June was 5.3%, showing no change from May but down 1.9 points from June 2013. The average gross yield across Tokyo was 7.2%, up 0.1 points from May but down 1.1 points from June 2013.Read more

by Zoe Ward

Land prices up in 79% of locations - MLIT Look Report

According to the latest data on land price movements published by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), 79.4% of the surveyed locations across Japan saw an increase in land prices in the first quarter of 2014.

119 of the 150 survey sites saw an increase in land prices, 27 sites (18%) saw no change in prices and just 4 sites (2.7%) saw a decline of between 0~3% in land prices. This is the first time in three years, however, that the number of survey locations to see an increase in land prices has declined.Read more

by Zoe Ward

Vacancy rates by apartment building in Tokyo - May

The following is a list of apartment buildings in Tokyo and their estimated vacancy rates in May:Read more

by Zoe Ward