1,001 room hotel planned for Niigata
On May 21, hotel developer and operator APA Group held the ground-breaking ceremony for a 1,001-room hotel and 212-unit condo development in Niigata City. This will be the largest mixed-use hotel and residential development in East Japan.
New apartment sales in Tokyo reach 47-year low
According to the Real Estate Economic Institute, the number of new apartments released for sale across greater Tokyo in April reached the lowest level seen since the Institute began collecting data in 1973. As developers shuttered salesrooms following the declaration of the state of emergency in mid-April, new home sales have stalled. Just 686 apartments were released for sale, down 68.0% from the previous month and down 51.7% from last year. A new record low is expected in May with the Institute forecasting a supply of 500 apartments.
Heritage-listed ryokan in Chiba to close and be demolished
The latest coronavirus-related closure in Japan’s hotel industry is the heritage-listed Kappo Ryokan Tamagawa in Funabashi, Chiba. On May 19, the operator announced that the ryokan had closed permanently at the end of April. No time will be wasted, with demolition of the 92-year old ryokan to start as early as June.
Hakodate City looking to sell former Russian Consulate
Hakodate City in Hokkaido is looking to sell the 112-year old former Russian Consulate within the year but has met strong opposition from local historians. The building has been sitting vacant for the past 24 years.
Japan hotel bankruptcies top 25 in April
According to Tokyo Shoko Research, there were 25 bankruptcies in the hotel industry in the month of April. 60% of those were said to be directly related to the impacts of the coronavirus pandemic. This is a steep increase from the 2 bankruptcies reported in April 2019, and not far from the record high of 29 seen in May 2011 (following the Tohoku disaster).
Real estate company offers financial support for struggling homeowners
Listed real estate developer and home-builder KI-STAR Real Estate Co., Ltd. has started offering cash payments to home-owners who are struggling to make mortgage repayments amidst the coronavirus crisis. This support program said to be the first of its kind in Japan's real estate industry.
Apartment transactions record biggest drop in 30+ years
As expected, transactions of second-hand apartments for the month of April have plummeted as buying activity sours during the coronavirus pandemic and state of emergency. A total of 1,629 apartments were reported to have sold across greater Tokyo in April, down 55.3% from the previous month and down 52.6% from last year. This is the biggest decline seen since REINS began recording data in May 1990.