Has Tokyo emptied out during the pandemic?
As residents in major cities around the world ponder moving to greener pastures, are Tokyo-ites doing the same thing? Are we seeing a mass exodus out of one of the world’s most livable cities?
Apartment transactions and sale prices continue recovery in July
Transactions and prices of second-hand apartments in greater Tokyo continue to improve as buyers return to the market. Monthly transactions in July were down just 2.4% from last year, ending a four-month run of double-digit declines. A total of 3,156 second-hand apartments were reported to have sold.
New apartment supply increases for first time in 11 months
The number of brand-new apartments released for sale across greater Tokyo in July increased by 7.8% from last year, according to the Real Estate Economic Institute. This is the first year-on-year increase in 11 months. After several months of intentionally limiting supply, and with the summer bonus season upon us, developers decided to release more apartments onto the market.
Commercial land prices fall in second quarter
On August 21, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the quarterly LOOK Report showing changes in land prices in Japan’s major cities. With July 1 as the survey point, this is the second look at land values since the pandemic began.
How long did it take to sell an apartment in the first half of 2020?
How long were apartments sitting on the market and how much of a discount did they trade at? The below is summarized from a recent report provided by Tokyo Kantei that looks into any impacts that the coronavirus pandemic may have had on Japan’s residential real estate market in the first half of 2020.
With limited rental relief, restauranteurs face bleak outlook
A new rental support payment was rolled out on July 14, allowing small-to-mid-sized businesses and sole proprietors to receive up to 2/3rds of their monthly store or office rent for six months, capping out at 6 million Yen for businesses and 3 million Yen for individuals. As of July 30, 170,000 applications had been made.
The wait has been too long for some restaurants, with customer levels not returning to normal after the state of emergency was lifted on May 25. Many had hoped that diners would return in June, but a second wave of the pandemic starting in July may deal a final blow for many. Late summer and autumn could see a spate of restaurant closures.
Office vacancies worsen for 5th month
Tokyo’s office vacancy rate worsened for the fifth month in a row in July as the commercial sector feels the pain of the coronavirus pandemic. According to office brokerage Miki Shoji, the office vacancy rate in Tokyo’s five business districts reached 2.77% in July, up 0.80 points from the previous month, and up 1.06 points from last year. This is the highest vacancy rate seen since March 2018 when it was 2.80%, and the highest monthly jump since the company began recording data in 2002.