Why did this apartment building in Shinagawa sell at a low price?
Last month, a J-REIT announced the sale of a 120-unit multi-family building near Shinagawa for 2.9 billion Yen (approx. US$19.8 million) to an unnamed buyer with handover to take place in April 2024.
The 15-story Residia Kita-Shinagawa rental apartment building sold with a cap rate of 4.6% based on the appraised value, while most multi-family buildings in central Tokyo currently have cap rates around the 3% range.Read more
Here’s where apartment rents are increasing the most across Japan
Rents for more spacious ‘family-type’ apartments in Japan’s major cities reached record highs in October, according to a report released by multiple-listing provider and data aggregator AtHome. The larger-sized rental housing is becoming an interesting segment of the market to observe as would-be homebuyers are starting to shift to rental housing as they become priced out of the condo market.Read more
Tokyo’s apartment rents increase 0.2% in November
According to Tokyo Kantei, the average monthly rent of a condominium-type apartment in Tokyo’s 23 wards was 4,236 Yen/m2 in November, up 0.2% from the previous month and up 10.7% from last year.Read more
Japan’s cold storage to heat up as inventory shrinks
Cold storage warehousing is expected to face dire market conditions in the coming years with demand to outstrip limited supply.Read more
What is the current pricing and yields on multi family assets in Tokyo?
To gain a bit more insight into Tokyo's multi-family market, we took a sample of 20 apartment buildings currently advertised for sale across Tokyo’s 23 wards, each priced above 1 billion Yen and with at least 10 units per building.
Yields
Japan’s land values continue to rise throughout 2023
Land values across Japan are rising at an increasing pace after suffering some declines during the pandemic. The rising prices are due to improving economic conditions, strong demand for apartments, and signs of a recovery in retail demand. According to the latest quarterly LOOK report published by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), 97.5% of the surveyed locations saw positive growth in the 3rd quarter of 2023 - the highest share seen on record. No locations saw a drop in prices.Read more
Tokyo's luxury real estate market is even cheaper now
Luxury housing in Tokyo still remains the cheapest amongst the top global cities by a long shot, and it has only become cheaper as the year progresses.Read more