Kenyan Minister facing questions over land purchase in Tokyo
Kenya's financial minister is being questioned over a government purchase of a block of land in Tokyo to build a new Kenyan Embassy. The purchase price was 1.6 billion Yen (USD18 million) and the government is being accused by a Parliamentary Committee of not doing adequate research prior to purchase, resulting in paying too much for something in a "low end market area." Kenya's budget allows for the purchase of buildings, but not vacant land.
90% of units sold out
The Roppongi Tokyo Club Residence made its initial sale offering of 92 units on July 17th, 2010. Over half of the units offered for sale were priced above 100,000,000 JPY. Of these 92 units, 90% have received purchase applications. The 7 penthouse apartments priced between 268,000,000 JPY and 480,000,000 JPY have all been sold.
Japan's other aging problem
Most apartment buildings in Japan have a service life of approximately 60 years, after which it can become necessary to rebuild.
In the past 10 years, the number of apartment buildings in Japan over 30 years old has increased from 120,000 to 930,000 buildings. Of Tokyo's 23 Wards, 49% of apartments over 30 years old are located in the Minato, Shibuya, Shinjuku, Setagaya and Suginami Wards. Areas such as Roppongi, Akasaka, Jingumae, Minamiaoyama and Takanawa have the highest concentration of old apartments.
The Apartment Reconstruction Facilitation Law was established to provide regulation over the rebuilding of apartment buildings as well as supporting the rights of residents in these buildings.Read more
Demolition work starts on Roppongi spa
The scaffolding is up as demolition work began this weekend on Zaboo spa and onsen in Roppongi.
Located across the street from Roppongi Hills, Zaboo closed its doors on January 1, 2008 after less than 2 years in operation. The building was owned by Unimat Realty.
There are plans to build a multi-uni apartment building on the land, and possibly combining the land with the adjacent carpark.
Tokyo Apartment Sales Movements
The graph above shows the total inventory of apartments and the sales contract rates from 2008 to June, 2010.
A contract rate above 70% is considered to indicate favourable market conditions, while a rate under 70% is unfavourable.
Source: Real Estate Economic Institute Co., Ltd.