Land prices up in 83% of locations - MLIT LOOK Report
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the land price movements across Japan for the third quarter in 2014 (July 1 ~ October 1).
According to the Chika Look Report, 124 locations (83% of the total) saw an increase from the previous quarter, and 26 locations (17% of the total) saw no change. For the first time since this survey began in late 2007, none of the 150 survey sites saw a decrease in prices. Of the 124 locations to see a price rise, 122 locations saw prices rise between 0 ~ 3%, while 2 locations (Ginza and Shinjuku 3 Chome) saw prices rise between 3 ~ 6%.
Strong investor demand caused by monetary easing, as well as demand for apartments in areas with convenient access have helped to sustain the price growth.
In greater Tokyo, 58 locations (89% of the total) saw land prices increase, while the remaining 7 locations (11%) saw no change. In greater Osaka, 30 locations (77%) saw prices increase, wile 9 locations (23%) saw no change. In Nagoya, all 14 locations saw prices increase.Read more
October rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,602 Yen/sqm in October, up 1.0% from the previous month and up 2.8% from last year. This is the first time in four months that the rent has exceeded 2,600 Yen/sqm. The average apartment size was 60.20 sqm and the average building age was 19.2 years.
The average monthly rent in Tokyo’s 23-ku was 3,233 Yen/sqm, up 0.8% from the previous month and up 4.9% from last year. The average apartment size was 56.74 sqm and the average building age was 17.4 years. Starting with Tokyo’s central 6 wards, almost all areas in the 23 wards have been seeing either stable or strong growth in rent.
Yokohama City is seeing a continued downwards trend. In Kobe City, the average building age increased from 19.9 years to 21.3 years, which caused a corresponding drop in average rent.Read more
Residential yields and vacancy rates in Minato-ku - November 2014
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in November was 5.3%, up 0.3 points from the previous month but down 0.5 points from last year. The average gross yield across Tokyo was 6.9%, showing no change from the previous month but down 0.7 points from last year.Read more
September rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,575 Yen/sqm in September, up 0.5% from the previous month and up 1.2% from last year. The average apartment size was 60.01 sqm and the average building age was 19.3 years.
The average rent in Tokyo’s 23-ku was 3,207 Yen/sqm, up 1.3% from the previous month and up 3.6% from last year. The average apartment size was 57.02 sqm and the average building age was 17.4 years.Read more
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
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
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.