Buy-back scheme for tsunami-hit land

The Japanese Government has announced a new buy-back scheme whereby the  residential and farming land along Japan's tsunami-hit coastline will be bought up by the relevant cities and towns at slightly higher prices.

The purchase price for the land will be calculated by its estimated market value in five years from now. This is based on the government's 5-year post-quake reconstruction plan which includes restoring all infrastructure to the disaster-hit areas.Read more

by Zoe Ward

Mori Trust acquires famous Kyoto hotel

Mori Trust announced on November 25 that they had acquired the site of Hotel Rantei in Kyoto from Kyoto Century Hotel for an undisclosed sum.

The traditional Japanese-style hotel has been closed since January, 2010, but will undergo a full refurbishment before being re-opened as a luxury hotel by 2013 - 2014. Once it is opened, they hope to attract wealthy domestic and foreign tourists.Read more

by Zoe Ward

US-based firm acquires two Omotesando buildings

Elliott Management, a US-based fund management firm, has acquired two buildings in prime locations just across the street from Omotesando Hills.

(1) 21st SY Building (fronting Omotesando Avenue and next to the Emporio Armani boutique). The 6-storey building is on a 360 sqm block of land. The 2011 assessed land value (koji-chika) for this site was 9,300,000 Yen/sqm.Read more

by Zoe Ward

Japanese investors heading offshore following March 11

The president of Stasia Capital wrote about the recent changes in investment strategies made by wealthy Japanese and how the events of 2011 created a turning point in the mindset and actions of Japanese investors.

--Inward facing Japanese investors--

Over the past 20 years, private Japanese investors have been relatively wary of investing overseas, but in the past 2 ~ 3 years, private investors began to shift their funds overseas.

This is due to:Read more

by Zoe Ward

Danchi reconstruction cancelled due to liquefaction

Reconstruction plans for the Sodegaura Danchi public housing project in Chiba's Narashino City have been put on hold as the recent liquefaction in the area caused by the March 11 Tohoku earthquake has deterred potential buyers for apartments in the new project.

The Sodegaura Danchi was built in 1967 and has 250 units. It is built on reclaimed land on Tokyo Bay and is a 45 minute drive from central Tokyo. A 3-bedroom apartment in the complex can be rented for as low as 60,000 Yen/month (780 USD).Read more

by Zoe Ward

Is 2012 the time to buy?

Good news for those waiting to buy an apartment. From next year, the inventory of unsold apartments is expected to reach high levels, which could result in more bargain buys.

According to the Real Estate Economic Institute, the sales contract rate for new apartments in September, 2011, had rebounded to 78%. In actuality, that degree of sales may not actually be true. The president of Attractors Lab said that the 'sales contract rate' is not entirely accurate because it does not include apartments that were held back from being released for sale.

In January, 2011, the Institute forecast an inventory of 50,000 apartments for the year. However, this was later reduced to an estimate of 45,000 apartments. The impact of the March 11 Tohoku disaster led many developers to delay apartment sales. By September, the actual supply was down to 28,000 units. Read more

by Zoe Ward

Vacant home owners at risk of punishment

According to the Ministry of Internal Affairs and Communications, there were 7,570,000 empty homes across Japan in 2008. Poorly maintained properties pose fire and crime risks and can also be a hazard in a natural disaster. However, there are currently no yet nation-wide laws to deal with such potentially dangerous properties.

Instead, individual cities and prefectures are starting to introduce their own "Vacant House Regulations" to combat this problem. Last year, a total of nine cities and/or prefectures including Tokorozawa (Saitama), Matsui (Shimane) and Wakayama Prefecture introduced such regulations. A further 9 areas ranging from Tohoku to Kyushu also have plans to enact similar ordinances. Read more

by Zoe Ward