2.2 Traditional machiya houses in Kyoto are demolished each day
Kyoto City is losing its traditional machiya townhouses at an alarming rate, with an average of 2.2 of these symbolic houses demolished each day.
On May 1, Kyoto City announced that approximately 5,600 machiya have been demolished over the past seven years. In 2016, a survey found that there were 40,146 surviving machiya in the city.
Of the surviving machiya, 14.5% are vacant and not occupied by owners or tenants, an increase of 4 points from the previous city survey in 2009. Kyoto City’s vacancy rate across all types of housing was 14% in a 2013 survey.Read more
First heritage de-listing for Kyoto City as 90-yr old bookstore is about to be demolished
Demolition of the 90-year old Heirakuji Bookstore in downtown Kyoto will begin this month as the owner can no longer afford to maintain the aging building.
The building was registered as a National Tangible Cultural Property in 1998. The heritage listing will be removed due to the demolition of the structure. This is the first time a national heritage listing has been removed from a property in Kyoto City and the second time for Kyoto Prefecture.Read more
Kyoto hotel industry boosted by foreign tourists
Hotel revenues and occupancy rates in Kyoto are rising thanks to the recent boom in foreign tourist numbers. Even the typical off-season months in winter and summer are now seeing strong demand for accommodation.
According to the Kyoto Convention Bureau, a survey of 34 hotels catering to foreign tourists found that the hotel occupancy rate in January 2017, which is off-season, was 75.7%. This is an increase of 4.3 points from 2016 and the highest rate seen for the month of January in the past four years. Kyoto Hotel Okura had an occupancy rate of 89.0% in 2016, up 7 points from 2015.Read more
New apartment prices in Kyoto reach record high in 2016
The average price of a new apartment in Kyoto City increased for the sixth year in a row, reaching 52,960,000 Yen in 2016. The city is the second most expensive region in Japan for new apartments, with Tokyo’s 23 wards in top place with an average price of 66,290,000 Yen in 2016.
Prices have been pushed up by several factors, including increasing construction costs, fierce competition between developers looking for sites for hotels, and growing demand from out-of-town buyers.Read more
Park Hyatt opening in Kyoto in 2019
Hyatt Hotels and Resorts is planning to open a new hotel in Kyoto. Park Hyatt Kyoto will be located within the grounds of the Kyoyamato Restaurant in Higashiyama-ku, which is about 600 meters from Kiyomizu-dera temple. The property was originally part of the estate of a sub temple and includes a tea room established 360 years ago.
Details on the Kyoto property have yet to be announced, but it is expected that the project will include 70 guest rooms. The restaurant will continue to operate after the hotel has opened. Takenaka Corporation will lease the land from the owner and build a 4-storey hotel which will then be leased to Hyatt. Construction will begin by the end of 2016 with the hotel scheduled to open in 2019.Read more
Investors finding success with Kyoto's traditional machiya
Kyoto’s traditional machiya townhouses are a popular commodity with domestic investors looking to profit from the booming tourist industry.
Machiya are appealing for their charm and character which cannot be easily replicated in new construction. The traditional architecture and relaxing interiors are also a major drawcard for tourists travelling in families or groups.
The age of these old properties also has tax benefits. Brand new construction may have a useful life for tax depreciation purposes of 20 years or more, but with an older property, the depreciation can be amortised over just 3 ~ 4 years in some cases. For an investor with a high annual income, this could allow them to reduce their tax burden.
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