Tokyo’s bayside islands struggling with apartment and population boom
Residents in Tokyo’s bayside islands in Chuo-ku and Koto-ku are growing increasingly concerned about whether the current transport infrastructure and schools can cope with the growing population. Over the past several years, the area has been undergoing a transformation from what was once heavy industrial areas and shipyards into islands crowded with high-rise residential towers.
The development boom is not the direct result of the coming Olympic games, although the announcement did lead to a flurry of sales from buyers excited by the news.
The Athlete’s Village is expected to be built on Harumi Island - about 1 kilometre from Kachidoki Station on the Oedo Line. It will need to house approximately 17,000 people for the Olympic games, with the housing converted for either rental or sale post-games. Read more
Park Mansion Mita Tsunamachi to go on sale this month
Mitsui's latest development - Park Mansion Mita Tsunamachi The Forest - goes on sale at the end of this month. Although prices have yet to be officially announced, this could be the most expensive condominium to go on sale in Tokyo this year. The model room was opened to the public over the weekend, but we had a sneak peak last week.
The 11-storey building is currently under construction on a large 6,100 sqm site directly south of the Australian Embassy. It is directly across the street from the gardens of the historic members-only Tsunamachi Mitsui Club as well as Mitsui's very first Park Mansion building - Mita Tsunamachi Park Mansion (1971).
About the model room
The 167 sqm (1,797 sqft) 1-Bedroom room is filled with optional extras and non-standard finishes. The original plan for this apartment is two bedrooms, one bathroom and a study. In addition this apartment, along with two others, also have private 'atelier' rooms on the 10th floor. The atelier that comes with this particular apartment is 35 sqm and has a mini kitchen, toilet, shower room and a 21 sqm roof terrace. Perfect for a home office, man cave or guest room.Read more
Vacancy rates by apartment building in Tokyo – June
The following is a list of apartment buildings in Tokyo and their estimated vacancy rates in June:
Development of row houses in Tokyo creating issues for residents and neighbours
Setagaya-ku has been seeing a rise in the number of multi-storey row houses being built on flagpole or battle-axe shaped blocks of land. Although an apartment building cannot be built on such blocks of land, developers can get around this rule by building terrace or row houses which do not fall under the definition of a ‘multi-unit dwelling’. Surrounding residents are concerned by the loophole as the densely packed homes could help spread a fire due to the difficult access for firetrucks.
Flagpole blocks of land usually have a long and narrow driveway via the road which leads to the building at the rear. Subdividing of larger blocks of land over the years has led to a number of these properties, many of which only have a 2-metre wide street frontage (the minimum allowed).
Year-on-year increase in Tokyo office rent for first time since 2008
According to Miki Shoji’s Office Report, the average office rent in Tokyo’s central five business areas (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in May had increased by 0.21% from 12 months prior. This is the first time since December 2008 that office rents had seen a year-on-year increase. It is also the fifth month in a row to see a month-on-month increase, indicating a turnaround in market conditions.
Landlord, Mitsubishi Jisho, have already hiked up the rent for some existing office tenants by 5 ~ 10%, and new tenants are being faced with rents that are 10 ~ 20% higher than they were in 2012.Read more
May rental data - Tokyo Kantei
According to Tokyo Kantei, the average monthly rent of a condominium apartment in greater Tokyo was 2,621 Yen/sqm in May, down 0.6% from the previous month but up 3.6% from last year. This is the first time in three months that the month-on-month change in rent has declined. The average apartment size was 59.17 sqm and the average building age was 18.4 years.
The average rent in Tokyo’s 23-ku was 3,197 Yen/sqm, down 0.2% from the previous month but up 3.6% from last year. This is the first time in six months to see a month-on-month drop in rent. The average apartment size was 56.28 sqm and the average building age was 16.5 years.Read more