Omotesando public housing site to be redeveloped
The Tokyo Metropolitan Government announced plans to redevelop the Aoyama Kitamachi Apaato, a city-operated public housing complex located near Omotesando Station and just behind Aoyama Dori Street.
The four hectare site currently contains 25 residential blocks built between 1957 and 1968. This project was said to be the first post-war city housing in Tokyo. Apartments ranged in size from 32 ~ 52 sqm. The 4 and 5 storey buildings have no elevators and some of the buildings did not have bathrooms (bathroom units were added to the balconies later).Read more
December rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condomonium apartment in greater Tokyo was 2,562 Yen/sqm in December, up 0.1% from the previous month and up 1.9% from the previous year. The average apartment size was 59.62 sqm and the average building age was 19.7 years.
In Tokyo’s 23-ku, the average monthly rent was 3,195 Yen/sqm, down 0.1% from the previous month but up 2.3% from the previous year.
Second-hand apartment prices in central Tokyo up 19% over the year
According to REINS, 2,497 second-hand apartments were sold across greater Tokyo in December 2014, down 11.8% from the previous month and down 13.9% from December 2013. This is the 9th month in a row to see a year-on-year decline.
The average apartment sale price was 28,470,000 Yen, up 1.4% from the previous month and up 11.2% from the previous year. The average price per square meter was 448,700 Yen, up 1.6% from the previous month and up 10.9% from the previous year. The average building age was 19.85 years.
1,250 second-hand apartments were sold in the Tokyo Metropolitan Area, down 12.6% from the previous month and down 12.1% from the previous year. The average sale price was 35,070,000 Yen, up 2.9% from the previous month and up 12.7% from the previous year. The average price per square meter was 593,400 Yen, up 3.1% from the previous month and up 10.7% from the previous year. The average building age was 18.93 years.
Luxury sales are rising in the metropolitan area with 79 apartments priced over 100 million Yen selling in the 4th quarter of 2014, up 31.7% from the same quarter in 2013.
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), the average sale price was 57,310,000 Yen, up 15.4% from the previous month and up 28.5% from the previous year. The average price per square meter was 998,600 Yen/sqm, up 3.3% from the previous month and up 19.6% from the previous year. It has now exceeded the level seen in January 2008 when REINS began keeping records for central Tokyo sale prices.Read more
Revision to voting ratios to make it easier to sell apartment building and land
On December 24, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced a revision to the Facilitation of Reconstruction of Condominiums Act which is intended to make it easier to sell off an older apartment building and land in order to speed up redevelopment.
Under the revision, the voting ratio to sell off the building and land will be reduced to 80% for kyu-taishin apartments that do not meet earthquake-resistant codes (the ratio was originally 100%). It is important to note that this revision does not apply to all apartments built before 1981. It only applies to those that failed an earthquake-resistant inspection.
At the end of 2013, there were 6,010,000 apartments across Japan. Of those, approximately 17% are in buildings built to the older earthquake codes (called kyu-taishin). The figures are higher for condominiums, with a third of condominium apartment buildings across Japan built to the older codes.
By April 2014, there were only 196 cases where kyu-taishin apartment buildings were redeveloped, accounting for just 1.4% of the total number of kyu-taishin apartments.Read more
Abandoned ski resort in Niigata sold for 1.3 billion Yen
The overgrown and abandoned former Arai Mountain & Spa Resort in Niigata Prefecture has been purchased by Tokyo-based A. C Holdings for 1.3 billion Yen. The company, which is involved in construction and golf course development, plans to re-open the ski resort and target wealthy tourists from China and across Asia.
The Arai Resort was developed by Hideo Morita, eldest son of Akio Morita( the co-founder of Sony) and opened in 1993. Over 50 billion Yen was invested in creating a world-class health resort. In its first year, however, the resort ran into management difficulties and Morita’s relatives provided an additional investment of 23 billion Yen to prop up the company. Eventually the over-investment, poor management and low tourist numbers led to the closure of the resort in 2006.Read more