Downward price movements intensify in Tokyo

Nomura Real Estate Urban Net has published the latest residential land and second-hand apartment price movements for greater Tokyo. The downward trend of property prices is beginning to intensify.

According to the data, the average price of residential land in the last quarter of 2011 fell 0.9% from the previous quarter. From the surveyed locations, only 3.6% of locations reported an increase in land prices, 59.3% reported no change in prices and 37.1% reported a fall in land prices. For second-hand apartments, the average price in greater Tokyo was down 1.1%.Read more

by Zoe Ward

On Sale: Mid Garden Akasaka Hikawa

With the first round of sales starting on January 14, price guidelines have been announced for Mid Garden Akasaka Hikawa. Two and three bedroom apartments are priced between 58 and 150 million Yen and the average price per square meter is 1,166,000 Yen. This property is competitively priced so sales are expected to go well. For a comparison, apartments in the recently completed luxury tower, The Tokyo Roppongi Club Residence,  just 500 meters away are priced at approximately 1,650,000 Yen/sqm.Read more

by Zoe Ward

10,000 public housing complexes require earthquake-retrofitting

Of the 183,547 public housing complexes run by local governments and the Urban Renaissance Agency (UR) across Japan, as many as 10,111 buildings require earthquake-retrofitting work. The total number of individual apartments within these buildings is 396,361.Read more

by Zoe Ward

Proposed law to reduce minimum voting rights for reconstruction

The number of aging apartment buildings in Japan that need to be rebuilt in the near future is growing at a rapid pace, yet actual reconstruction projects are seriously lagging.

These projects are frequently stalled as the body-corporate meetings can take up to 10 years before any agreement is reached. This is due in part to the laws which require over 80% of apartment owners to agree to reconstruction. Older buildings tend to have older residents who are happy to stay where they are and don't want to relocate to temporary accommodation for 3 years while awaiting their new home. Other setbacks include a lack of funds for the project and owners with low incomes who cannot afford to take on any additional financial burdens.Read more

by Zoe Ward

Is Tokyo's special economic zone destined to be a flop

In recent years, Japan has been losing losing its competitive advantage as foreign companies choose to locate their headquarters in other more business and tax-friendly Asian cities such as Singapore and Hong Kong.

As a way to increase the nation's international competitiveness the Japanese government recently announced plans to create special international business zones in seven areas across Japan. Locating your business within one of these zones will qualify you for certain tax breaks.Read more

by Zoe Ward

The "2012 Problem" of over-supply

Not only are residential apartments expected to flood the market in 2012, but the supply of new office space is also expected to reach record high levels.

This year, the supply of office space in central Tokyo is expected to reach the third highest level since the bubble economy in the late 1980s. Although construction companies are seeing brisk business, office vacancy rates continue to rise and we are entering into what the real estate industry is calling the "2012 problem". Department stores are facing similar conditions with an oversupply of under-performing branch stores.Read more

by Zoe Ward

Moves to cancel mortgages in tsunami-affected areas

On December 29 the Japan Housing Finance Agency (JHF) announced that they are considering either canceling mortgages or reducing the repayments to homeowners from the tsunami affected areas in Tohoku.Read more

by Zoe Ward