Retro buildings popular with retail tenants
Although many retailers prefer newer construction, there are some stores in Japan that specifically look for the older, character-filled properties to complement their brand. Sterile retail space is being eschewed for pre-war or 1960s vintage buildings and homes that can be converted and renovated into trendy, one-of-a-kind spaces.
Cafe Conana, Jiyugaoka
In April 2015, Cafe Conana opened a branch in Jiyugaoka, Meguro-ku. The cafe is in an old terrace house that was completely renovated with exposed ceiling beams, and a light and bright interior. Dropped ceilings were removed to expose the skeleton of the house. Rafters were painted white, and natural wood has been used throughout.Read more
Record number of apartment sales in central Tokyo in August
According to REINS, 2,415 second-hand apartments were sold across greater Tokyo in August, down 14.0% from the previous month but up 14.0% from last year. This is the 5th month in a row to see a year-on-year increase in transactions.
August is typically a slow month for real estate sales due to the hot weather and summer holidays.
The average apartment sale price was 28,320,000 Yen, down 1.3% from the previous month but up 0.4% from last year. The average price per square meter was 448,200 Yen, down 0.8% from the previous month but up 2.6% from last year. The average building age was 20.44 years.
1,185 apartments were sold in the Tokyo metropolitan area, down 15.7% from the previous month but up 18.1% from last year. This is also the 5th month in a row to see a year-on-year increase in transactions. The average sale price was 35,020,000 Yen, up 0.7% from the previous month and up 0.4% from last year. The average price per square meter was 602,300 Yen, down 0.1% from the previous month but up 2.5% from last year. The average building age was 19.61 years.
Central Tokyo’s 3 wards:
In central Tokyo’s 3 wards (Chiyoda, Chuo and Minato), 142 second-hand apartments were sold, down 13.9% from the previous month but up 24.6% from last year. This is the highest number of transactions recorded for the month of August since record-keeping began in 2008, and is approximately 63% higher than the average seen between 2008 ~ 2012.
The average sale price was 51,650,000 Yen, down 4.5% from the previous month and down 7.5% from last year. The average price per square meter was 1,017,900 Yen, down 0.1% from the previous month but up 10.6% from last year. This is the third month in a row where prices have exceeded the 1,000,000 Yen/sqm level. The average building age was 16.27 years.Read more
Developer gives up on redevelopment plans near Sendai Station
Tokyu Land have abandoned redevelopment plans for the West Exit of Sendai Station due to low profitability forecasts. The land was acquired during the market peak in 2006~2007.
Tokyu sold their 80% share of the land under the Sakurano Department Store to a fund in December 2014. At the end of August 2015, they sold 1,095 sqm of land, which included the land under the Sendai Toyo Building and the site of the former Asahiya Building, to a separate fund for an undisclosed price. Earlier this year Tokyu had considered redeveloping the smaller site, but made a final decision to sell.Read more
Former art museum to be donated to Akita City
On September 3, the Akita Prefectural Governor announced plans to donate the former Akita Prefectural Art Museum to Akita City.
Due to the building's age and deterioration, the prefecture originally planned to demolish the 49-year old building. Akita City, however, have plans to repair and use the building. The estimated cost to repair and retrofit the building had earlier been estimated at over 1.1 billion Yen (9.2 million USD), while demolition would cost just 160 million Yen (1.3 million USD).Read more
Residential yields in Minato-ku - September 2015
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in September was 4.6%, down 0.1 points from the previous month and down 1 point from last year. The average gross yield across Tokyo was 6.5%, showing no change from the previous month and down 0.5 points from last year.
The average asking price of a second-hand apartment in Minato-ku was 874,485 Yen/sqm as of September 1, 2015, up 0.6% from the previous month and up 8.7% from last year. The average asking price for land was 1,236,969 Yen/sqm, up 0.2% from the previous month but down 3.3% from last year.Read more