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.

by Zoe Ward

Japan's other aging problem

takanawa-high-mansion-1971Most 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

by Zoe Ward

Demolition work starts on Roppongi spa

Zaboo Roppongi

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.

by Zoe Ward

Tokyo Apartment Sales Movements

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.

by Zoe Ward

Second-hand apartment prices in Tokyo continue to increase

According to Tokyo real estate service provider, Tokyo Kantei, the average price of a 70 sqm second-hand apartment in Tokyo's 23 Wards in May, 2010, was 43.05 million Yen. This is an increase of 9.5% from June of 2009. Prices in Saitama and Chiba Prefectures also saw increases, while Yokohama had a slight fall in prices.

In recent years, Tokyo has seen the supply of brand new apartments fall, and the focus shifted towards pre-existing units. With a decline in home-loan interest rates and and increase in certain tax exemptions on gift taxes, buyers have started returning to the market.

In the past, there was a clear difference in the market for brand new and second-hand apartments. But recently, there are more and more buyers who are comparing both brand new and second-hand apartments for purchase.

Nikkei Shimbun, July 16, 2010

by Zoe Ward

On Sale this Saturday: The Roppongi Tokyo Club Residence

The Roppongi Tokyo Club Residence will accept purchase applications from this Saturday, July 17th, 2010.  This is the first stage of sales, and all 92 units to be put on the market on the 17th are expected to be sold out by the end of the day.

The 92 units on sale Saturday are priced between 61,200,000 ~ 480,000,000 Yen and between 47 ~ 177 sqm.Read more

by Zoe Ward

June apartment sales contracts return to high level

According to the Real Estate Economic Institute, the sales contract rate for apartments in Tokyo reached 83.9% in June, 2010 (an increase of 13.7 points from June, 2009). The last time we saw high levels was in August of 2005, when the contract rate was 89.1%.

This year has seen a clear improvement in contract rates, with January ~ June seeing favorable rates over the 70% threshold. The Real Estate Economic Institute believes this trend will continue.

The supply of apartments put up for sale increased by 66.6% compared to the previous year, with the average price being 46.94 million Yen (an increase of 3.3%).

Source: The Asahi Shimbun, July 15, 2010

by Zoe Ward