Secondhand apartment transactions up for first time in 13 months
According to REINS, 2,808 second-hand apartments were sold across greater Tokyo in April, down 24.7% from the previous month but up 0.8% from last year. This is the first time in 13 months to see an increase in transactions from the year before. February and March are typically the busiest months of the year for sales, so it is not surprising to see transactions down from March.
The average apartment sale price was 28,280,000 Yen, down 3.2% from the previous month but up 5.2% from last year. The average price per square meter was 445,500 Yen, down 1.7% from the previous month but up 5.1% from last year. The average building age was 20.11 years.
1,377 apartments were sold in the Tokyo metropolitan area, down 25.3% from March but up 1.0% from April 2014. This is also the first time in 13 months to see a year-on-year increase in transactions. The average sale price was 34,900,000 Yen, down 1.9% from the previous month but up 3.6% from last year. The average price per square meter was 597,400 Yen, down 1.9% from the previous month but up 3.6% from last year. The average building age was 18.95 years.
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 158 apartments were sold, down 31.3% from the previous month but up 1.3% from last year. The average sale price was 53,600,000 Yen, down 1.3% from the previous month but up 11.3% from last year. The average price per square meter was 996,800 Yen, up 3.0% from the previous month and up 11.1% from last year. The average building age was 16.24 years.Read more
68% of Japan’s empty homes are in old buildings
According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), approximately two-thirds (68.9%) of Japan’s vacant homes are in buildings built before 1980. Older properties that have been left to rot, particularly those built to the old earthquake construction codes (called ‘kyu-taishin’), can be at risk of collapse and are a danger to neighbours.
44.5% of the vacant homes were built before 1970, and 24.4% were built between 1971 ~ 1980. In 1981, the major change to Japan’s earthquake-resistant construction codes was introduced.
Hidetaka Yoneyama, a senior researcher at the Fujitsu Research Institute, said that the low market value of kyu-taishin properties means that there are many cases where they are simply abandoned.Read more
Renovated apartments offer cheaper alternative to new
There is a common belief that Japanese only like new things - new cars, new appliances and new homes. However, with the price of new apartments rising and incomes falling, buyers have been turning their attention to older properties on the resale market.
Second-hand apartments can be about 20% lower than the price of a brand new one, although in prime locations in central Tokyo the difference in price is almost zero. As you move to the outer suburbs, eg. 40 minutes by train from Tokyo or Osaka, you can find older properties for about half the price of new ones in the same area. Travel even further and you may find secondhand apartments in 10-year old buildings selling for just 30 ~ 40% of the price of a new apartment.
An apartment’s interior can be upgraded to almost the exact finish as a brand new apartment, although consumers do need to be wary of factors such as the building age and possible issues with piping.Read more
Residential yields in Minato-ku - May 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in May was 4.7%, down 0.1 points from the previous month and down 0.6 points from last year. The average gross yield across Tokyo was 6.6%, showing no change from the previous month but down 0.5 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 869,700 Yen/sqm as of May 1, down 1.1% from the previous month but up 9.8% from last year. The average asking price for land was 1,211,818 Yen/sqm, up 0.5% from the previous month and up 5.7% from last year.Read more
Greater Tokyo's largest apartment development announced
Chiba Prefecture announced the three developers that have been chosen to work on a large-scale apartment project in Makuhari New City in Chiba. Mitsui Fudosan, Mitsubishi Jisho and Nomura Real Estate will begin work on a 180 billion Yen (1.5 billion USD) residential complex with approximately 4,300 apartments. When complete, it will be the largest apartment complex in the greater Tokyo area.
To appeal to young family buyers, prices will kept at affordable levels, with some suggesting they could be around the 40 million Yen (335,000 USD) range. The complex will house as many as 10,000 residents when complete.Read more
Town in West Tokyo offering free homes to new residents
Okutama Town in the far western outskirts of Tokyo is offering free homes to entice younger residents. Under the scheme, selected families will be provided with accommodation for 15 years, after which they will receive ownership of the house for free. They will not be charged rent for the duration of the term, although they will be required to pay annual property taxes (around 30,000 Yen per year) and will have to bear any renovation and repair costs.
This is the second time that the town has offered free housing. In January and February, the town received over 250 inquiries and 24 applications on a house offered under the scheme.Read more