Redevelopment not an option for many apartment buildings
Buying an apartment in an older building may be appealing because you can get more space for your money, but what will happen down the track when the building has reached a point where it needs rebuilding?
According to the Ministry of Land, Infrastructure, Transport and Tourism, only 218 apartment buildings nationwide have either been redeveloped or are in the process of doing so. This represents just 0.5% of the 38,000 buildings built before 1981 - the year when the major change to earthquake-resistant building codes was introduced.
So why are there so few examples? Read more
Developer abandons plans for resort in Nagano
Haseko Corporation announced on January 14 that they have abandoned their plan to build a resort in the Okutateshina onsen area in Chino City, Nagano Prefecture.
Haseko said the decision was a financial one as the project's profitability was in question. Read more
Residential yields and vacancy rates in Minato-ku - February 2014
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in February was 5.4%, down 0.4 points from January. The average gross yield across Tokyo was 7.4%, down 0.1 points the previous month.
Strong apartment sales in Okinawa
Okinawa is seeing high demand for new apartments, with real estate agents reporting properties being sold without any marketing and a severe shortage in stock levels.
All 338 apartment in Ryu:X West Tower in Omoromachi, Naha City, have sold out, and 90% of the apartments offered for sale in the East tower are already under contract. The two 30-storey towers contain 676 apartments. The West Tower was completed in September 2013 and the East Tower will be completed in 2015.Read more
Developer seeks to cancel contracts in luxury Aoyama apartment building after fault discovered
Mitsubishi Jisho Residence is currently in the process of cancelling sale contracts on apartments in The Parkhouse Grand Minamiaoyama Takagicho after a construction fault was discovered.
Just before Christmas in 2013, an anonymous post on an online discussion board mentioned that there had been some core drilling into the concrete. Drilling holes in concrete to take core samples usually indicates a potentially serious problem. Adding to suspicions, Mitsubishi removed the sales page for the project and removed any mention of the new building from their website a few days later. The building still had 3 apartments left for sale.
The message boards lit up with comments from concerned buyers who were desperate for an official response from Mitsubishi.
Ralph Lauren Building in Omotesando to be sold for 35 billion Yen
Mitsubishi Corporation have entered into final negotiations to purchase the Espoir Omotesando building for 35 billion Yen (340 million USD). The sellers - Secured Capital Investment Management, Orix and Trinity Investment - acquired the building in 2010 for 31 billion Yen. It was one of the biggest transactions in Japan that year. Read more