Residential yields in Minato-ku - June 2016
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in Tokyo was 4.4% in June 2016, up 0.2 points from the previous month but down 0.3 points from last year. The average yield across Tokyo was 6.2%, down 0.1 points from the previous month and down 0.5 points from last year.
The average asking price for a second-hand apartment in Minato-ku was 979,942 Yen/sqm as of June 1, up 0.9% from the previous month and up 14.3% from last year. The average asking price for land was 1,391,818 Yen/sqm, up 1.2% from the previous month and up 14.8% from last year.Read more
Historic Kudan Kaikan to be replaced with high-rise building
There are plans to convert the historic Kudan Kaikan building near the Imperial Palace in Tokyo into a 75-meter tall office building. Tenders will soon be open to developers, with the requirements that proposals include retaining parts of the historic facade or at least attempting to recreate the facade, and for a new building with a height of no more than 75 meters.Read more
Tokyo Apartment Sales in May 2016
The following is a selection of apartments that were sold in central Tokyo during the month of May 2016:Read more
Mitsubishi acquires Shibuya site for potential luxury condominium project
Mitsubishi Jisho Residence and Cosmos Initia have acquired a large development site near Shibuya Station. Details have yet to be announced, but industry insiders suggest that, given the size of the land, it could be slated for a luxury condominium project.
Update: The project is called The Parkhouse Shibuya Nanpeidai. Pre-sales for Hong Kong-based buyers began in September 2017, with prices starting from around 145 million Yen. The 10-storey building will have approximately 100 apartments with completion by May 2019 or later.
The 3,300 sqm (35,500 sq.ft) site in Nanpeidaicho is located near the Cerulean Tower Tokyu Hotel and a 5 minute walk from Shibuya Station’s South Exit. It was purchased from Japan Tobacco for an undisclosed price estimated somewhere in the several billion Yen range. The site included a 5-storey office building which is currently being demolished.Read more
Mori announces 3.6 billion USD in projects around Toranomon Hills
Last month Mori Building announced details on three new high-rise towers planned for the Toranomon District. These three towers will surround Mori’s Toranomon Hills complex on the north, south and western sides.
The total project cost is estimated at around 400 billion Yen (approx. 3.6 billion USD), and completion is expected between 2019 ~ 2022 2023.Read more
Tokyo’s vintage apartment market in 2016
Tokyo Kantei released a report on the market values of ‘vintage’ apartment buildings and their retain or lose value over time. This year’s survey was a follow up to the last survey carried out in 2009.
Based on their findings, the vintage properties most likely to see values erode over time were:
1. In buildings over 40 years old;
2. With low earning potential; and
3. Located outside of the Yamanote Line.
40 year+ buildings have the highest risk of losing value
Of the surveyed properties that held their value over time, 91.8% were in buildings less than 40 years old.
Of the vintage apartments that saw a drop in value, 26.7% of them were in buildings over 40 years old. Older buildings, particularly those dating from the 1970s and earlier, may be built to older earthquake codes, tend to require costly maintenance and repairs since they may have ageing plumbing, will require elevators to be replaced and are generally getting towards the end of their useful service life. These factors are the main contributors to their declining value.Read more
Same day sellout in The Parkhouse Shinjuku Gyoen
All 47 apartments offered in the first round of sales in Mitsubishi’s The Parkhouse Shinjuku Gyoen condominium received applications on the first day. The building is now 90% sold.
An average of 2.1 purchase applications were made on each apartment, with the most popular apartment receiving 8 applications. The sales office received over 3,400 inquiries and had 600 groups through the show room since early March.Read more