Tsukiji makes World Monuments Watch List
Tokyo’s Tsukiji district was listed by the World Monuments Fund on their 2016 World Monuments Watch List. The district’s early 20th century architecture, which includes small two- and three-story wooden shophouses, is considered to be at risk due to the urban redevelopment that will occur after the relocation of the Tsukiji Fish Market.
The Tsukiji area is located just south of Ginza. It was largely reduced to rubble and burnt fields following the 1923 Great Kanto earthquake, and the area’s neighbourhoods underwent a large re-shuffle. The fish market from Nihonbashi was relocated to Tsukiji and opened in 1935.Read more
Central Tokyo apartment asking prices up 17%
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo in September was 31,590,000 Yen, up 1.4% from the previous month and up 11.9% from last year. This is the 13th month in a row to see an increase. The average building age was 22.4 years.
In Tokyo’s 23 wards, the average asking price was 49,130,000 Yen, up 1.0% from the previous month and up 16.5% from last year. This is the 15th month in a row to see an increase in prices. The average building age was 22.2 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average asking price was 69,210,000 Yen, up 1.3% from the previous month and up 17.0% from last year. The average building age was 20.6 years.
Tokyo residential rents continue slow rise
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,647 Yen/sqm in September, up 2.2% from the previous month and up 2.8% from last year. The leading cause of the increase in the rent was due to a large share (60%) of properties located in the Tokyo metropolitan area. The average apartment size was 60.27 sqm and the average building age was 19.0 years.
In the Tokyo metropolitan area, the average rent was 3,182 Yen/sqm, up 0.2% from the previous month and up 3.2% from last year. The average apartment size was 57.51 sqm and the average building age was 17.3 years.
In Tokyo’s 23 wards, the average rent was 3,326 Yen/sqm, up 0.4% from the previous month and up 3.7% from last year. The average apartment size was 56.93 sqm and the average building age was 16.7 years.
Average rents in Saitama, Osaka, Kobe and Nagoya were all down from last year.
Foreign investment in Japan reaches 19-year high but still low by international standards
Investment by foreign-based funds and corporations in Japanese real estate has reached the highest level since 1996. Between January and September 2015, foreign funds acquired 706.5 billion Yen (5.91 billion USD) of property, an increase of 41% from the same period in 2014.
Meanwhile, some last minute transactions at the end of 2014 put the annual acquisition volume for 2014 at 981.8 billion Yen.
Some of the funds have been seeking capital gains, while others, including government-related funds, have been seeking high yields with a long-term view for holding their assets. In September, average office rents in central Tokyo increased for the 21st month in a row. The average spread between the office yield in central Tokyo and the long-term interest rate is around 3%, versus 1% in Singapore and Hong Kong.Read more
New apartment sales slow in September
Rising prices have caused some buyers to retreat from the new apartment market, causing developers to postpone sales of some projects. According to the Real Estate Economic Institute, 2,430 new apartments were released for sale in September, down 6.9% from the previous month and down 27.2% from last year. 1,604 apartments were sold, making the contract rate 66.0%, down 8.3 points from the previous month and down 5.6 points from last year. This is also below the 70.0% level said to indicate the line between good and poor market conditions.
262 apartments in high-rise buildings (over 20 storeys) were offered for sale, down 36.3% from last year. The contract rate was 66.8%.
The average price of a brand new apartment released for sale in greater Tokyo was 53,930,000 Yen, down 8.2% from the previous month but up 13.2% from last year. The average price per square meter was 761,000 Yen, down 7.6% from the previous month but up 14.4% from last year.
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Central Tokyo apartment sale prices reach new 7 year high
According to REINS, 2,772 second-hand apartments were sold across greater Tokyo in September, up 14.8% from the previous month but down 5.7% from last year. This is the first time in six months that transactions have fallen below last year’s level.
The average apartment sale price was 29,580,000 Yen, up 4.5% from the previous month and up 7.6% from last year. The average price per square meter was 462,700 Yen, up 3.2% from the previous month and up 9.0% from last year. The average building age was 20.00 years.
1,389 second-hand apartments were sold in the Tokyo metropolitan area, up 17.2% from the previous month but down 2.5% from last year. The average sale price was 36,070,000 Yen, up 3.0% from the previous month and up 6.8% from last year. The average price per square meter was 612,500 Yen, up 1.7% from the previous month and up 7.8% from last year. The average building age was 18.99 years.
Central Tokyo’s 3 wards
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 156 second-hand apartments were sold, up 9.9% from the previous month and up 3.3% from last year.
The average sale price was 53,100,000 Yen, up 2.8% from the previous month and up 8.6% from last year. The average sale price per square meter was 1,024,500 Yen/sqm, up 0.6% from the previous month and up 13.7% from last year. This is now the fourth month in a row to see prices exceed the 1,000,000 Yen/sqm level. The average building age was 16.58 years.Read more
Tokyu to start flipping luxury condominiums
This month, Tokyu Land will start sales of condominium units in a 9 year old residential building in Roppongi. The company acquired the former Residia Tower Roppongi, a 27-storey rental-only tower, in 2014 and will soon start selling off the apartments individually as they become vacant.
The revamped building has been re-named ‘Majes Tower Roppongi’. It is across the street from The National Art Center, 200 meters from Tokyo Midtown and 600 meters from Roppongi Hills. Apartment prices will range from 60 ~ 200 million Yen (500,000 ~ 1.66 million USD), with an average price of around 1,630,000 Yen/sqm (1,260 USD/sq.qft).
A 47.88 sqm (515 sq.ft) studio apartment on the 8th floor is listed for 66,100,000 Yen, while a 117.14 sqm (1,260 sq.ft) 2-Bedroom apartment on the 6th floor is listed for 199,600,000 Yen.
Based on average rents, investor-buyers should expect gross yields the 2 ~ 3% range. Just 6 of the 83 apartments will be available for sale during the first round of sales this month. They will be ready for delivery to buyers from early 2016.
Because this was originally built as a rental building, it does not have floating floors (something commonly found in condominiums as a way to provide extra insulation and sound proofing, and allow for easier re-configurations of piping and layout). Ceiling heights are also a maximum of 2,450mm, which is average but a little lower than the 2,500 ~ 2,600mm found in luxury residences.Read more