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

Tokyo apartment yields December 2014

According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in December was 5.9%, up 0.6 points from the previous month but down 0.1 points from last year. The average gross yield across Tokyo was 6.8%, 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 833,542 Yen/sqm as of December 1, up 3.8% from the previous month and up 16.5% from last year. The average asking price for land was 1,258,787 Yen/sqm, down 1.1% from the previous month but up 17.5% from last year.Read more

by Zoe Ward

Suginami-ku buys historic villa for 3.1 billion Yen

Tekigai Villa Suginami

Suginami ward in Tokyo has purchased the historic Tekigai Villa in Ogikubo 2 Chome for 3.1 billion Yen and plans to preserve the house and restore its gardens.

Tekigaiso was built in 1927 and designed by architect Ito Chuta. Ito was a leading architect in early 20th century Imperial Japan and had designed the original Meiji Jingu Shrine, the Okura Museum of Art near Hotel Okura in Akasaka, and the Tsukiji Hongan-ji Temple.Read more

by Zoe Ward

Why building repair fees are so important

Apartment buildings require maintenance and repairs to ensure a safe and comfortable environment for residents. To cover these costs, apartment owners pay a monthly fee that is saved up in the building’s repair fund. According to the Ministry of Land, Infrastructure, Transport and Tourism, the average monthly repair fee should be approximately 200 Yen per square meter (based on the interior floor area of an apartment). For a typical family sized apartment of 70 sqm, this would amount to around 14,000 Yen a month.

The amount to be collected as repair fees is decided by the building’s owners association (although they are initially decided by the developer). Ideally the fees should be set at a level that ensures enough money is accumulated for the scheduled repairs.

For example, if exterior repainting needs to be done every 12 years and water pipes replaced every 30 years, enough money needs to be put aside each month for these essential repairs.

Unfortunately there are a number of cases where the amount in the reserve fund is insufficient. This can happen when the repairs required have exceeded initial estimates, or when costs have risen to unexpected levels (which is currently evident with a steep rise in material and labour costs). Developers may also be to blame by intentionally setting repair fees at low levels in order to attract buyers.Read more

by Zoe Ward

Tokyu Fudosan Holdings redeveloping Dogenzaka HQ

Tokyu Fudosan Holdings Dogenzaka

On November 7, Tokyu Fudosan Holdings announced that they are redeveloping their head office building and neighbouring buildings in Dogenzaka, Shibuya-ku.

The Shibuya Nanpeidai District Redevelopment Plan covers a 4,100 sqm site alongside the 246 Expressway and 500 meters from Shibuya Station. It is expected that redevelopment will begin once Tokyu have relocated their office to Minami Aoyama in 2015.

The following buildings will be redeveloped:

  • Shin Nanpeidai Tokyu Building (1974)
  • Nanpeidai Tokyu Building / Tokyu Skyline Apartments (1958)
  • Shibuya TOD Building (1989)

Read more

by Zoe Ward

Tokyo apartment sales in November 2014

Tokyo apartment sales Nov 2014

The following is a selection of apartments that were sold in central Tokyo during the month of November 2014:Read more

by Zoe Ward

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

by Zoe Ward

Same-day sellout in The Parkhouse Higashi Ginza

The Parkhouse Higashi Ginza 1

All 28 apartments offered during the first round of sales in Mitsubishi Jisho Residence’s The Parkhouse Higashi Ginza sold out on the same day.

The 13-storey apartment building is located a 1 minute walk from Shintomicho Station and is 700 meters from Ginza’s Chuo Dori Street. Apartments range in size from 70 ~ 81 sqm (753 ~ 872 sqft) and are all 3-bedrooms. Prices ranged from 74 ~ 108 million Yen (640,000 ~ 920,000 USD), with an average price of around 1,240,000 Yen/sqm.

The sales office received 1,587 inquiries and had 276 groups visit the showroom. Each apartment received an average of 1.9 purchase applications, with the most popular apartment receiving 5 applications. The lucky buyers were selected via a lottery-type system.Read more

by Zoe Ward