Developer gives up on redevelopment plans near Sendai Station

Sakurano Department Store SendaiTokyu Land have abandoned redevelopment plans for the West Exit of Sendai Station due to low profitability forecasts. The land was acquired during the market peak in 2006~2007.

Tokyu sold their 80% share of the land under the Sakurano Department Store to a fund in December 2014. At the end of August 2015, they sold 1,095 sqm of land, which included the land under the Sendai Toyo Building and the site of the former Asahiya Building, to a separate fund for an undisclosed price. Earlier this year Tokyu had considered redeveloping the smaller site, but made a final decision to sell.Read more

by Zoe Ward

Former art museum to be donated to Akita City

Former Akita Prefectural Art Museum 1

On September 3, the Akita Prefectural Governor announced plans to donate the former Akita Prefectural Art Museum to Akita City.

Due to the building's age and deterioration, the prefecture originally planned to demolish the 49-year old building. Akita City, however, have plans to repair and use the building. The estimated cost to repair and retrofit the building had earlier been estimated at over 1.1 billion Yen (9.2 million USD), while demolition would cost just 160 million Yen (1.3 million USD).Read more

by Zoe Ward

Possible reporting requirements to curb derelict buildings

To help prevent a rise in dilapidated and poorly maintained apartment buildings, The Tokyo Metropolitan Government is considering introducing regulations that would require owners' associations to report on building maintenance.

Older condominiums can easily fall into disrepair when the owners are not actively managing or maintaining the buildings. Maintenance can be especially challenging when the majority of owners are elderly and on fixed incomes, as it can be difficult to obtain approval for costly repairs.Read more

by Zoe Ward

Residential yields in Minato-ku - September 2015

Tokyo Minato Yields Sep 15

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in September was 4.6%, down 0.1 points from the previous month and down 1 point from last year. The average gross yield across Tokyo was 6.5%, showing no change from the previous month and down 0.5 points from last year.

The average asking price of a second-hand apartment in Minato-ku was 874,485 Yen/sqm as of September 1, 2015, up 0.6% from the previous month and up 8.7% from last year. The average asking price for land was 1,236,969 Yen/sqm, up 0.2% from the previous month but down 3.3% from last year.Read more

by Zoe Ward

Akashi’s tallest and most expensive condominium tower to go on sale this month

Proud Tower Akashi 3

Akashi City’s tallest and most expensive condominium is going on sale later this month and is already drawing a lot of interest from potential buyers. Three of the apartments will be priced over 100 million Yen and the most expensive apartment will be a 110 sqm (1,184 sq ft) 4-Bedroom unit priced at 130.9 million Yen (1.09 million USD). It is unusual to see apartments priced over 100 million Yen in the suburban areas of Kansai, and this is the first time that Akashi City has seen apartments priced at this level.

Proud Tower Akashi will be a 34-storey condominium located just a 2 minute walk from Akashi Station and 350 meters from the Akashi Castle park. The 199 apartments range in size from 54 ~ 110 sqm (581 ~ 1,184 sq ft) and are priced from 22.5 ~ 130.9 million Yen.Read more

by Zoe Ward

Tokyo apartment sales in August 2015

Tokyo apartment sales August

The following is a selection of apartments that were sold in central Tokyo during the month of August 2015:Read more

by Zoe Ward

Tokyo office rents to peak in 2017?

A vacancy rate of 5% is said to be the line between a landlord’s market and a tenant’s market. According to Miki Shoji, the vacancy rate in Tokyo’s central five business districts in July 2015 was 4.89%, down 0.23 points from June and down 1.31 points from last year. Shibuya-ku has the lowest vacancy rate of 2.27%, down 1.82 points from last year. CBRE reported that the all-grade vacancy rate in July 2015 was 3.3% in the 5 wards and 3.6% across the 23 wards. During the mini-bubble in 2007, the vacancy rate across all wards dropped to just 1.2%, while monthly rents reached a peak of 52,350 Yen/Tsubo (15,863 Yen/sqm).

Marunouchi remains the prime office location, and Marunouchi’s landlord - Mitsubishi Estate - is currently enjoying a vacancy rate of just 1.8%.

With renewed confidence in the economy, vacancy rates have again improved, while office rents have increased to a current average of 33,600 Yen/Tsubo (10,181 Yen/sqm), up from 29,050 Yen/Tsubo (8,803 Yen/sqm) seen during the market bottom.

Demand from companies seeking to rent entire floors is thought to be a driving force behind the rising rents. Companies are starting to group divisions and departments into one building or one floor, rather than having various smaller office locations.Read more

by Zoe Ward