Tokyu Plaza Ginza sold
On March 3, Tokyu Fudosan Holdings Corporation announced the sale of Tokyu Plaza Ginza. The sale price was not disclosed, although it had a book value of 118.5 billion Yen (US$872 million) as of March 2022. Tokyu is expecting an impairment loss of 21.1 billion Yen for the fiscal year ending March 2023.
REIT acquires partial ownership in ARGYLE aoyama
A 50% quasi co-ownership share in the ARGYLE aoyama on the corner of Aoyama and Gaien-Nishi streets in central Tokyo has been acquired by the Japan Real Estate REIT for 23.9 billion Yen (approx. US$175 million). The building is fully leased and the cap rate is 2.9%.
New Issey Miyake store completed in Ginza
Yasuda Real Estate has completed construction of its 3rd project in Ginza. The 9-story Ginza Matsuya-dori Yasuda Building will have Issey Miyake as the key tenant on the first 4 floors.
35-story tower for Kyobashi
Tokyo Tatemono is planning a 35-story, 180-meter-tall high-rise for Kyobashi. Construction will start in 2025 with completion tentatively scheduled for 2029. A city planning decision was granted on January 13.
Daikanyama retail sells for 1.8 billion Yen
A low-rise retail and office building just behind Daikanyama Station sold for 1.877 billion Yen (approx. 14.3 million USD). The seller, Starhill Global REIT, entered into a sale agreement in December with an undisclosed buyer.
Our Japan Property Market Report for 2022
2022 was a year of turmoil for markets, with interest rate rises, high inflation, and ongoing supply chain disruptions. Japan did not suffer to the same extent, with interest rates and inflation remaining low. The stable domestic conditions favored the real estate market with prices continuing to rise throughout the year.
Please feel free to view or download the PDF of our annual Japan Property Market Report, linked below.
Expected rental yields on Tokyo real estate assets hit 23-year low
Investors are expecting lower rental yields from office and residential assets in Tokyo. According to the Japan Real Estate Institute’s investors survey published on November 2022, the expected rental yield on Class A office space in Tokyo’s Marunouchi and Otemachi district was 3.2% as of October 2022, down from a 3.3% expected yield in April.