Average rent in Tokyo drops for 5th month in a row
According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,334 Yen/sqm in November 2017, up 0.8% from the previous month but down 0.5% from last year. Average rents have been down year-on-year since July, although they have been showing an increasing trend for apartments in buildings less than 10 years old.Read more
Tokyo facing office space shortage in prime buildings
Office vacancy rates in central Tokyo’s business districts continue to shrink with Jones Lang Lasalle reporting almost no vacancies in the main office buildings in the Marunouchi district. After reaching a high of 9.43% in mid-2012, vacancy rates in Tokyo’s central five business districts were down to 3.03% last month - a level last seen in April 2008.
It’s not just Marunouchi that is suffering from a dire shortage in available office space, with prime high-rise buildings in Nihonbashi, Shinjuku and Shibuya also seeing demand outstrip supply. Tenant demand is being supported by improved business earnings and company growth, resulting in a need for larger office space to accommodate growing staff numbers.Read more
Construction starts on Aoyama Bell Commons redevelopment
Construction has started on a 20-storey commercial building on the site of the former Aoyama Bell Commons building in the Omotesando / Gaienmae area in Tokyo. Completion is due by April 2020.
The 90m tall Kita Aoyama 2 Chome Project will include retail on the first two floors, a hotel on floors 3, 4 and floors 16 through 20, and office and co-working space on floors 5 through 15. The total floor area will be 22,910 sqm, approximatley 50% larger than Aoyama Bell Commons, while the new building will be almost twice as tall.Read more
New apartment prices in Tokyo increase for 8th month
According to the Real Estate Economic Institute, 3,366 brand new apartments were released for sale across greater Tokyo in November, up 19.5% from the previous month and up 24.6% from last year.
The average sale price was 55,510,000 Yen, down 0.6% from the previous month but up 7.6% from last year. The average price per square meter was 835,000 Yen, up 3.0% from the previous month and up 11.5% from last year. This is the 8th month in a row to record a year-on-year increase in sale prices.Read more
Tokyo apartment sale prices increase for 62nd month
According to REINS, 2,904 second-hand apartments were sold across greater Tokyo in November, down 6.4% from the previous month and down 2.7% from last year. The average sale price was 32,020,000 Yen, down 0.2% from the previous month but up 1.6% from last year. The average price per square meter was 502,000 Yen, up 0.1% from the previous month and up 1.7% from last year. This is the 59th month in a row to see a year-on-year increase in sale prices. The average building age was 21.21 years.
In the Tokyo metropolitan area, 1,512 second-hand apartments were sold, down 4.7% from the previous month and down 2.6% from last year. The average sale price was 39,610,000 Yen, up 1.3% from the previous month and up 2.1% from last year. The average price per square meter was 673,000 Yen, up 2.6% from the previous month and up 2.9% from last year. This is the 62nd month in a row to record a year-on-year increase in sale prices. The average building age was 19.61 years.Read more
Tokyo’s Ota Ward first in Japan to ban overnight accommodation in exclusive residential zones
Tokyo’s Ota Ward is the first district in Japan to ban all minpaku-style overnight or short-term accommodation in exclusively residential zones. On December 8, local councillors voted in favor of the ban with the rules to go into effect from June 15, 2018.
Ota was one of the first areas in Japan to actively promote and encourage short-term rentals. In January 2016 Ota ward allowed registered hosts of properties in approved 'special zones' to rent out accommodation for minimum stays of 6 nights without needing a hotel license. Normally a stay of less than 30 days would require a hotel license. Councillors have also voted in favor of reducing this stay to a minimum of 2 nights and 3 days.Read more
Norges Bank acquires 132.5 billion Yen in real estate in Omotesando/Harajuku in JV
Norges Bank Real Estate Management (NBREM), part of Norway’s sovereign wealth fund, will acquire a 70% stake in a 132.5 billion Yen (approx. 1.17 billion USD) portfolio of real estate in Tokyo along with partner Tokyu Land. This is NBREM’s first investment in Asia.Read more