Tokyo pushing for two new subway lines
On July 10, the Tokyo Metropolitan Government announced an additional five possible locations to be considered for new train lines. The five potential routes have been added to a total of 14 routes that the Tokyo believes should be ‘under consideration’ and will be submitted to the Ministry of Land, Infrastructure, Transport and Tourism at the end of July.
One of the new routes under possible consideration is a subway line that could link the Ariake district in Tokyo Bay with the Ginza district. Although it would be impossible to have a new line built in time for the 2020 Summer Olympics, during which several sporting events will be held in the bayside area, the area has been seeing an increase in the local population which could eventually warrant the need for rail access. A bus rapid transport (BRT) system is planned for the area with services tentatively scheduled to start in 2019, however a bus system may not be sufficient for passenger capacity requirements and could leave new residents with a congested and inconvenient transport system.Read more
Secondhand apartment sale prices reach new record in central Tokyo
According to REINS, 3,114 second-hand apartments were sold across greater Tokyo in June, up 3.5% from the previous month and up 10.7% from last year. This is the 3rd month in a row to see a year-on-year increase in transactions.
The average apartment sale price was 29,140,000 Yen, up 0.9% from the previous month and up 6.2% from last year. The average price per square meter was 453,300 Yen, up 0.1% from the previous month and up 6.6% from last year. The average building age was 20.26 years.
1,579 apartments were sold in the Tokyo metropolitan area, up 8.6% from the previous month and up 14.3% from last year. The average sale price was 35,670,000 Yen, down 1.4% from the previous month but up 4.5% from last year. The average price per square meter was 596,500 Yen, down 2.7% from the previous month but up 5.9% from last year. The average building age was 19.44 years.
Sale prices in central Tokyo reach new record high
Miyagi Prefecture’s vacancy rate set to rise
Local governments in Miyagi Prefecture are paying close attention to vacancy rate trends as demand for temporary housing following the Tohoku disaster is expected to be short-lived.
The prefecture has a vacancy rate of 9.4%, making it the lowest in Japan and the only prefecture with a single digit vacancy rate. The low number of vacant houses, however, can be largely attributed to a steep rise demand for temporary housing from residents displaced by the 2011 Tohoku disaster.
There are concerns that the vacancy rate will start to climb again as the public housing projects built for these residents are gradually completed.Read more
Residential yields in Minato-ku - July 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in July was 4.7%, showing no change from the previous month and down 0.5 points from last year. The average gross yield across Tokyo was 6.5%, down 0.2 points from the previous month and down 0.6 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 857,785 Yen/sqm as of July 1, 2015, up 85 Yen from the previous month and up 9.1% from last year. The average asking price for land was 1,226,363 Yen/sqm, up 1.1% from the previous month but down 1.9% from last year.Read more
High-rise condo in Ariake bans AirBnb hosts
The growing number of apartment owners or tenants leasing out their properties on AirBnb in Tokyo is becoming a cause for concern for owners’ associations.
The board of directors of Brillia Mare Ariake, a 33-storey condominium in Tokyo Bay, have taken steps to curb the conspicuous number of private short-term rentals in the building. According to a post on Brillia Mare Ariake’s management blog, the rise in holiday letting or short-term rental listings, including share-houses, in the building had the board of directors worried. Of particular concern was the use of the building’s facilities, such as the pool and spa, by a large number of short-term guests and visitors that are unaware of building rules. The increase in the number of strangers using the building's facilities was also considered to pose a risk to property values.Read more