High-rise apartments may soon lose their inheritance tax appeal
Apartments, particularly those in high-rises, have been a very appealing means of reducing inheritance taxes due to the way real estate is valued for estate purposes. That may soon change with the National Tax Agency (NTA) firming up plans to value apartments closer to their market price.Read more
Chiba City wants more office buildings and is willing to pay for them
Chiba City has been suffering from a lack of quality office buildings in the city center, particularly in front of major stations, and is going to offer financial incentives of up to 2 billion Yen (approx. US$14.3 million) per project to encourage new construction or building extensions.Read more
Tokyo new apartment prices remain above 100 million Yen for 3rd month
For the third month in a row the average sale price of a brand-new apartment in Tokyo’s 23 wards has exceeded 100 million Yen. In May, the average price was 114,750,000 Yen (approx. US$808,000), up 47.9% from last year.Read more
Tokyo remains one of the cheapest international cities for luxury housing
Luxury housing in central Tokyo remains amongst the cheapest in the top global cities. A luxury condominium in Tokyo’s high-end Motoazabu neighborhood is about 59% cheaper than its Hong Kong equivalent and 45% cheaper than one in London, according to the Japan Real Estate Institute.Read more
Expected yields on Japanese real estate remain at historic lows
Despite the turmoil happening in some overseas commercial real estate sectors, investors in Japanese real estate continue to anticipate record-low yields. That may be due in part to low interest rates which make it one of the few places with a positive yield spread over government bonds. The latest investor survey by the Japan Real Estate Institute in April shows expected yields have either remained the same or dropped, depending on the asset class and location.Read more
Tokyo office vacancy rates expected to stabilize at the 6% range
According to a report by Mitsubishi UFJ Trust and Banking Corporation, the office vacancy rate in Tokyo is expected to remain around the 6% range for the next five years. Rents are expected to bottom out in 2024, followed by a mild increase.Read more
Government approves 11ha Shinagawa redevelopment
The proposed redevelopment of the Grand Prince Hotel in Shinagawa is progressing with the Minister of Land, Infrastructure, and Transport issuing project approval on June 1.Read more