Tsukiji makes World Monuments Watch List
Tokyo’s Tsukiji district was listed by the World Monuments Fund on their 2016 World Monuments Watch List. The district’s early 20th century architecture, which includes small two- and three-story wooden shophouses, is considered to be at risk due to the urban redevelopment that will occur after the relocation of the Tsukiji Fish Market.
The Tsukiji area is located just south of Ginza. It was largely reduced to rubble and burnt fields following the 1923 Great Kanto earthquake, and the area’s neighbourhoods underwent a large re-shuffle. The fish market from Nihonbashi was relocated to Tsukiji and opened in 1935.Read more
Central Tokyo apartment asking prices up 17%
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment in greater Tokyo in September was 31,590,000 Yen, up 1.4% from the previous month and up 11.9% from last year. This is the 13th month in a row to see an increase. The average building age was 22.4 years.
In Tokyo’s 23 wards, the average asking price was 49,130,000 Yen, up 1.0% from the previous month and up 16.5% from last year. This is the 15th month in a row to see an increase in prices. The average building age was 22.2 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya), the average asking price was 69,210,000 Yen, up 1.3% from the previous month and up 17.0% from last year. The average building age was 20.6 years.
Kobe to restore 82-year old town hall
Kobe City will soon carry out earthquake-retrofitting work on the historic Kobe Municipal Mikage Town Hall. The hall will close in early 2016 and will reopen in 2017. Although it survived the 1995 Hanshin Earthquake, a building inspection in 2008 found that it did not meet current earthquake codes.
With the urging of local residents, the city plans to retain as much of the historic exterior and interior as possible. Retrofitting and repairs are expected to cost 1.597 billion Yen (13.2 million USD).Read more
Tokyo residential rents continue slow rise
According to Tokyo Kantei, the average monthly rent of a condominium in greater Tokyo was 2,647 Yen/sqm in September, up 2.2% from the previous month and up 2.8% from last year. The leading cause of the increase in the rent was due to a large share (60%) of properties located in the Tokyo metropolitan area. The average apartment size was 60.27 sqm and the average building age was 19.0 years.
In the Tokyo metropolitan area, the average rent was 3,182 Yen/sqm, up 0.2% from the previous month and up 3.2% from last year. The average apartment size was 57.51 sqm and the average building age was 17.3 years.
In Tokyo’s 23 wards, the average rent was 3,326 Yen/sqm, up 0.4% from the previous month and up 3.7% from last year. The average apartment size was 56.93 sqm and the average building age was 16.7 years.
Average rents in Saitama, Osaka, Kobe and Nagoya were all down from last year.
Foreign investment in Japan reaches 19-year high but still low by international standards
Investment by foreign-based funds and corporations in Japanese real estate has reached the highest level since 1996. Between January and September 2015, foreign funds acquired 706.5 billion Yen (5.91 billion USD) of property, an increase of 41% from the same period in 2014.
Meanwhile, some last minute transactions at the end of 2014 put the annual acquisition volume for 2014 at 981.8 billion Yen.
Some of the funds have been seeking capital gains, while others, including government-related funds, have been seeking high yields with a long-term view for holding their assets. In September, average office rents in central Tokyo increased for the 21st month in a row. The average spread between the office yield in central Tokyo and the long-term interest rate is around 3%, versus 1% in Singapore and Hong Kong.Read more
Japan’s Zero Energy Houses
In April 2014, the Japanese Government approved plans to encourage Zero Net Energy Houses (ZEH) with the goal of making them standard for new house construction by 2020. Zero energy houses are designed to use as much energy as they can create using renewable energy on-site.
The Ministry of Economy, Trade and Industry (METI) has also established an investigative commission to create guidelines and standards for construction.
However, there are some potential challenges. Solar power, for example, is not the most efficient option for all houses across Japan due to weather and environmental differences. Also, for houses on very small blocks of land, installing high capacity solar panels to offset energy consumption may not be physically possible due to the limited size of the site.Read more
New apartment sales slow in September
Rising prices have caused some buyers to retreat from the new apartment market, causing developers to postpone sales of some projects. According to the Real Estate Economic Institute, 2,430 new apartments were released for sale in September, down 6.9% from the previous month and down 27.2% from last year. 1,604 apartments were sold, making the contract rate 66.0%, down 8.3 points from the previous month and down 5.6 points from last year. This is also below the 70.0% level said to indicate the line between good and poor market conditions.
262 apartments in high-rise buildings (over 20 storeys) were offered for sale, down 36.3% from last year. The contract rate was 66.8%.
The average price of a brand new apartment released for sale in greater Tokyo was 53,930,000 Yen, down 8.2% from the previous month but up 13.2% from last year. The average price per square meter was 761,000 Yen, down 7.6% from the previous month but up 14.4% from last year.
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