Commercial real estate transactions emerge from slump
There are already signs that some sectors of the real estate market are emerging from the pandemic-induced slump, with the total commercial transaction value in June recovering by a considerable amount from the record low seen in May.
Harajuku has best apartment resale value in 2019
According to an annual report released by Tokyo Kantei on July 2nd, apartments around Harajuku Station had the highest resale value over a 10-year span. The report ranks 515 stations in the greater Tokyo area by the average difference in the resale value of a 10-year old apartment compared to its price when brand new.
Showroom closures see new apartment supply hit 47-year low
The supply of brand new apartments released for sale across greater Tokyo in June dropped 31.7% from last year to 1,543 units. This is the 10th month in a row to see a year-on-year drop, although it is a four-fold increase from the units supplied in May.
Tokyo apartment discounts in June
The real estate industry kicked back into gear in June as both businesses and individuals began to pick up activity after the end of the state of emergency. Transactions of existing apartments, while not back to last year’s numbers, have improved significantly in June, following two months of drastic falls. In Tokyo’s Minato ward, transactions are only 2.4% below the number reported in June 2019. What about discounts? Is it a negotiation frenzy?
Apartment transactions and sale prices recover in June
Buying activity in the greater Tokyo area is starting to resume, with monthly transactions starting to recover from levels seen during the shut down in April and May. In June, a total of 3,107 second-hand apartments were reported to have sold across greater Tokyo, up 83.6% from May. This number is still 11% below the transactions seen in June 2019, but an improvement from the 52.6% year-on-year drop seen in April and the 38.5% drop seen in May.
Son sells Tiffany Building in Ginza
As part of their expansion in investment in the Ginza district, real estate company HULIC has acquired the Tiffany Ginza Building from SoftBank CEO Masayoshi Son this month. This was a joint purchase with Fuyo General Lease, a Mizuho Financial Group company.
The ARGYLE aoyama opens
On June 19, the 20-story mixed-use redevelopment of Aoyama Bell Commons reached completion. The 90-meter tall building, named the ARGYLE aoyama, includes office, hotel and retail.