Roppongi has the lowest rental yields in Tokyo
According to Tokyo Kantei, brand new apartments within walking distance of Roppongi Station had the lowest rental yields in greater Tokyo with an estimated gross return of 2.34%. Across greater Tokyo the average gross yield on a new apartment was 4.44%, and as high as 6.19% for 30 year old apartments.
Yields reflect risk and tend to be lower in areas with high rental and sales demand. They also tend to be higher for older buildings to reflect a variety of factors such as higher maintenance costs, lower rental demand and rents that decline at a slower rate than property values.Read more
Google Japan office relocation signals return of Shibuya’s Bit Valley
On November 17, Google Japan announced plans to relocate their head office to a new office tower near Shibuya Station in mid-2019.
Google will be taking up floors 14 to 35 in Shibuya Stream - a 35-storey office tower due for completion in late 2018. The 50,000 sqm (538,000 sq ft) of office space will allow them to double their staff numbers from the current level of 1,300. The lower floors of the Shibuya Stream building will be hotel rooms, making Google the sole office tenant.
Average rent in Tokyo drops for 4th month in a row
According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,308 Yen/sqm in October, up 0.6% from the previous month but down 0.7% from last year. This is the 4th month in a row to record a year-on-year decline in rents.Read more
New apartment prices in Tokyo increase for 7th month
According to the Real Estate Economic Institute, 2,817 brand new apartments were released for sale across greater Tokyo in October, down 5.4% from the previous month and down 3.0% from last year.
The average sale price was 55,860,000 Yen, down 4.1% from the previous month but up 3.3% from last year. The average price per square meter was 811,000 Yen, down 4.1% from the previous month but up 2.3% from last year. This is the 7th month in a row to record a year-on-year increase.
The contract ratio across greater Tokyo was 60.7%, down 0.9 points from last year.
199m tall building for Tsukishima
A 59-storey, 199m tall condominium is planned for Tsukishima - a manmade island in Tokyo Bay. A town planning decision is expected in 2018, with construction to start in 2022 and completion scheduled for 2025.
The Tsukishima 3 Chome North District Redevelopment Project will include approximately 1,120 apartments, as well as retail and childcare facilities on the lower floors.
Gaien House redevelopment to be completed by May 2020
The redevelopment of Gaien House, a condominium located just south of the new Olympic Stadium site, is expected to be completed by May 2020. Obayashi Corporation has been chosen by the owners association as the construction company.
The new building will be 23-storeys and 86 meters tall with a total floor area of 60,000 sqm. In addition to apartments, it will also have a nursery, retail and car parking.
*Update: The new condominium will be called The Court Jingu-Gaien and will have 409 apartments, of which 180 will be made available for sale. Sales are scheduled to begin in October 2018. Apartment sizes will range from 70 ~ 310 sqm.