First LOOK at land prices since pandemic
On June 19, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) published their latest quarterly LOOK Report and land prices in Japan’s major cities. With a survey point of April 1, this is the first look at land prices since COVID. Overall, 73% of the surveyed locations nationwide saw an increase in land prices, down from a 97% share in the previous quarter.
New apartment sales drop 82.2% in May
The number of new apartments released for sale across greater Tokyo in May dropped 82.2% from last year to just 393 units. This is the lowest volume since the Real Estate Economic Institute began reporting data in 1973. Showrooms remained closed for most of the month due to the nationwide state of emergency. The contract ratio was 72.3%, up 12.3 points from last year but down 6.6 points from April.
Forestry sales to foreigners drop 50% in 2019
Foreign funds have purchased a total of 163 hectares of forestry across Japan in 2019, according to the Ministry of Agriculture, Forestry and Fisheries. This is less than half of the 373 hectares that were acquired by foreign interests in 2018. There were a total of 31 transactions.
Quick real estate news summary for the week
Residential and office rents remain high, corporate sentiment sinks to an 11-year low, and a foreign fund backs away from a 100 billion Yen acquisition plan. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
South Korean company to develop condos in Niseko
South Korean conglomerate Hanwha Group is planning a large-scale condominium project for the winter ski resort town of Niseko in Hokkaido. This would be the first major development by a South Korean company in Niseko.
Rent subsidy for retail landlords
A severe downturn in the retail, food, and beverage industry has led many struggling tenants to reach out to their landlords to request rent discounts. Although there are no government directives protecting tenants at this time, landlords are being encouraged to cooperate with tenant requests where possible. But, not all landlords are in a position to do so, with rental income often going towards loan repayments and property holding costs. Recently, some local cities have started offering financial support to those landlords.
Tokyo apartment transactions drop 38% in May
The number of second-hand apartments reported to have sold across greater Tokyo in May dropped 38.5% from last year to 1,692 units. With the state of emergency continuing into May, the temporary closure of real estate brokerages and general restraint from consumers saw a slowdown in activity. The drop is less severe than it was in April, which recorded a 52.6% year-on-year drop in transactions.