Residential yields and vacancy rates in Minato-ku - October 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in October was 5.0%, down 0.6 points from the previous month and down 0.8 points from last year. The average gross yield across Tokyo was 6.9%, down 0.1 points from the previous month and down 0.8 points from last year.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 797,243 Yen/sqm as of October 1, down 0.9% from the previous month but up 15.9% from last year. The average asking price for land was 1,278,181 Yen/sqm, down 0.07% from the previous month but up 22.4% from last year.Read more

by Zoe Ward

August rental data - Tokyo Kantei

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,561 Yen/sqm in August, up 0.1% from the previous month and up 0.5% from last year. The average apartment size was 59.71 sqm and the average building age was 19.2 years.

The average rent in Tokyo’s 23-ku was 3,166 Yen/sqm, down 0.3% from the previous month but up 2.3% from last year. The average apartment size was 56.65 sqm and the average building age was 17.5 years.Read more

by Zoe Ward

Can I rent my home out on a short-term basis, like on AirBnb, in Japan?

  • Currently, any leases for less than 30 days require either a hotel license or minpaku registration.
  • Failure to meet licensing requirements could result in jail or a fine, depending on the type and severity of the violation.
  • Most homes and apartments do not qualify under current regulations.

Recently, the Japanese government has been deregulating the hotel and short-term letting industry to provide more accommodation options for foreign tourists in the lead-up to the 2020 Tokyo Olympics. With the latest data putting Japan’s residential vacancy rate at 13.5%, this reform has been touted as a way to help fill up some of Japan’s 8 million empty homes, of which half are rentals.

AirBnb is already quite popular in Japan with listings ranging from traditional farmhouses in the countryside to contemporary apartments in downtown Tokyo.

The new short-term minpaku regulations now allow hosts to rent out their property on a short-term basis. Properties must still meet certain requirements, such as being in the correctly zoned location, having a building certificate, meeting minimum floor sizes, having lockable windows and doors, proper walls between rooms, adequate fire escapes, information provided in several languages, meet hygiene requirements and must meet construction and fire codes. If you plan to sub-let your apartment, you need your landlord's permission. If you own your apartment, the home owners association must allow minpaku rentals in the building (most do not).

A registered minpaku-type property may rented for up to 180 days per year. Local governments have the authority to reduce this limit to an even lower number, and many already do. In Tokyo, each ward has introduced their own set of rules and limitations.

Read more

by Zoe Ward

Residential yields and vacancy rates in Minato-ku - September 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in September was 5.6%, up 0.3 points from the previous month but down 0.4 points from last year. The average gross yield across Tokyo was 7.0%, showing no change from the previous month and down 0.9 points from last year.

The vacancy rate was 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 804,386 Yen/sqm as of September 1, up 1.55% from last month. The average asking price for land was 1,279,090 Yen/sqm, up 0.17% from last month. Read more

by Zoe Ward

Profiting from investment apartments in Tokyo not so simple

Private investors with smaller budgets need to be aware that they face a much higher risk level when investing in Tokyo's real estate market.

While a budget of several hundred million Yen will afford you a variety of options, anyone looking to spend under 100 million Yen or even under 10 million Yen on real estate in Tokyo will either be looking at older blocks of flats (‘apaato’) in outer areas or single apartments in more central areas. These type of properties can be very risky for investors, simply due to the high supply and risk of relying on a sole tenant.  Read more

by Zoe Ward

July rental data - Tokyo Kantei

Japan apartment rent July 2014

According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,558 Yen/sqm in July, down 2.0% from the previous month but up 1.0% from last year. The average apartment size was 59.92 sqm and the average building age was 18.9 years.

The average rent in Tokyo’s 23-ku was 3,174 Yen/sqm, showing no change from the previous month and up 2.5% from last year. The average apartment size was 56.38 sqm and the average building age was 17.1 years.Read more

by Zoe Ward

Residential yields and vacancy rates in Minato-ku - August 2014

Tokyo apartment yields august 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in August was 5.3%, up 0.1 points from last month but down 0.4 points from August 2013. The average gross yield across Tokyo was 7.0%, down 0.1 points from last month and down 1.1 points from last year.

The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.

The average asking price of a secondhand apartment in Minato-ku was 792,143 Yen/sqm as of August 1, up 0.79% from last month. The average asking price for land was 1,276,970 Yen/sqm, up 2.1% from last month.Read more

by Zoe Ward