Sublease lawsuits on the rise
Disputes on sublease agreements for rental properties are on the increase across Japan.
A sublease or rental guarantee agreement is where a company, often a real estate agency, leases an apartment building or block of flats from the property owner to sublease out to tenants. The owner is guaranteed a fixed rent each month and does not have to worry about any vacancies, although the rent they receive will be lower than market rates. These sublease agreements are often long-term with periods ranging from 10 to 30 years. While landlords may be promised secure and stable rental income, the contracts often contain clauses allowing the sublessor to reduce the rent or even to cancel the agreement.Read more
Details released for Akasaka Twin Tower Redevelopment Site
Details were released earlier this month on the Akasaka 2 Chome Project near Tameikesanno Station in Tokyo. The project has received special permission under the National Strategic Special Zones Law and town planning approval is expected in 2017 or 2018. Completion is tentatively scheduled for 2022 2024.
The 11,866 sqm site is owned by Mori Trust and currently used as a car park. It was previously home to the 18-story Akasaka Twin Tower Building which was built in 1983 and demolished in 2015. The new office tower is likely to include an international hotel on the upper floors. Details on height and floor count have yet to be announced, although it could potentially be as tall as the Akasaka Tower Residence Top of the Hill apartment building located directly to the west of the site.Read more
Japan’s new apartment supply in 2016 reaches 24-year low
The supply of brand new apartments released for sale across Japan in 2016 reached the lowest level seen since 1992. Transactions of second-hand apartments, however, reached a record high with sales up 6.9% in greater Tokyo and the highest level seen since record-keeping began.
According to the Real Estate Economic Institute, a total of 76,993 new apartments were released for sale across the country, down 1.4% from 2015. This was the 3rd year in a row to see a year-on-year decline in supply.Read more
Tokyo apartment asking prices in January 2017
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment in greater Tokyo was 35,680,000 Yen in January 2017, showing no change from the previous month but up 6.9% from last year. The average building age was 22.4 years.
In the Tokyo metropolitan area, the average asking price was 48,240,000 Yen, down 0.3% from the previous month but up 3.9% from last year. The average building age was 22.0 years.
In Tokyo’s 23 wards, the average asking price was 53,170,000 Yen, down 0.2% from the previous month but up 3.0% from last year. This is the first time in 3 months to record a month-on-month decrease. The average building age was 21.8 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 72,820,000 Yen, down 0.4% from the previous month but up 2.0% from last year. The average building age was 20.1 years.
215m tower for Minato Mita District
Details on Sumitomo’s redevelopment of a 4 hectare site just west of Mita Station in Tokyo have been released. The Mita 3 and 4 Chome District Redevelopment will include a 215m tall, 42-storey office tower, as well as several low-rise residential buildings. Construction is scheduled to start in 2018 with completion by 2023.Read more
Average apartment rent in January 2017
According to Tokyo Kantei, the average monthly rent of a condominium-type apartment in greater Tokyo was 2,681 Yen/sqm in January 2017, down 1.4% from the previous month but up 4.4% from last year. The average apartment size was 60.24 sqm and the average building age was 20.3 years.
In the Tokyo metropolitan area, the average monthly rent was 3,186 Yen/sqm, down 0.4% from the previous month but up 1.9% from last year. The average apartment size was 58.03 sqm and the average building age was 18.4 years.
In Tokyo’s 23 wards, the average monthly rent was 3,330 Yen/sqm, down 0.7% from the previous month but up 1.5% from last year. This was the first time in 3 months to see a decrease, although prices have remained fairly constant around the 3,300 Yen/sqm range since August 2016. The average apartment size was 57.65 sqm and the average building age was 17.8 years.