Secondhand apartment transactions increase in Tokyo only

According to REINS, the number of transactions made on secondhand apartments in greater Tokyo in January 2012 fell 3.3% from the year prior to 2305. Tokyo City was the only area that saw an increase in the number of transactions for the month.

Chiba saw the highest drop with only 270 transactions for the month - down 18.9% from January 2011. This is the 10th continuous month of decline.Read more

by Zoe Ward

The difference between the listing price and sale price of apartments in 2011

Based on apartment transaction data from 2011, Tokyo Kantei have provided details on the difference between the asking price and realized sales price of second-hand apartments in greater Tokyo and the Kansai region. It is quite common for an apartment on the secondary market to sell below the listing price.Read more

by Zoe Ward

Japanese home loan approval process becoming more difficult

The thorn in the side of the apartment market recovery

In March, 2011, the risk of holding real estate was actualized when the earthquake caused liquefaction alongside Tokyo Bay and led to a temporary period of restrained buying. Although the events of March will not soon be forgotten, there are signs that buyers are starting to return to the market with several new projects attracting a large number of inquiries and achieving good sales.Read more

by Zoe Ward

Average apartment rent in 2011

Tokyo Kantei announced the average apartment rent across Japan's three major metropolitan areas - Greater Tokyo, the Kinki region (Osaka, Kyoto, Nara) and the Chubu region (Aichi, Nagano, Shizuoka, etc). Tokyo and Chubu both saw a fall in the average rent, but the Kinki region saw an increase of 2.4% in 2011. Compared to the average rent of 1622 Yen/sqm/month in 2009, the rent in the Kinki region has increased by 6.5% over the past 2 years. This is said to be the result of an increase in newer apartments from 2010.Read more

by Zoe Ward

Downward price movements intensify in Tokyo

Nomura Real Estate Urban Net has published the latest residential land and second-hand apartment price movements for greater Tokyo. The downward trend of property prices is beginning to intensify.

According to the data, the average price of residential land in the last quarter of 2011 fell 0.9% from the previous quarter. From the surveyed locations, only 3.6% of locations reported an increase in land prices, 59.3% reported no change in prices and 37.1% reported a fall in land prices. For second-hand apartments, the average price in greater Tokyo was down 1.1%.Read more

by Zoe Ward

The "2012 Problem" of over-supply

Not only are residential apartments expected to flood the market in 2012, but the supply of new office space is also expected to reach record high levels.

This year, the supply of office space in central Tokyo is expected to reach the third highest level since the bubble economy in the late 1980s. Although construction companies are seeing brisk business, office vacancy rates continue to rise and we are entering into what the real estate industry is calling the "2012 problem". Department stores are facing similar conditions with an oversupply of under-performing branch stores.Read more

by Zoe Ward

Supply of new apartments to increase by 17.6% in 2012

According to the Real Estate Economic Institute, the number of new apartments to hit the market in greater Tokyo next year is forecast to reach 53,000 units. This is an increase of 17.6% from 2011.

This is due to an increase in construction projects as well as the postponement of apartment sales following the March 11 Tohoku disaster.Read more

by Zoe Ward