Hotel and office development for Tamachi Station area
Tokyo Gas, Mitsui Fudosan and Mitsubishi Jisho announced plans for the redevelopment of a 2.8 hectare site behind Tamachi Station in Minato-ku.
The TGMM Shibaura Project will include:
- Office Tower (A): 180m tall; 31 floors.
- Office Tower (B): 185m tall; 36 floors.
- Hotel: 65m tall; 9 floors.
- Welfare Center: 35m tall; 6 floors.
Construction is expected to start in 2015 and should be completed by 2019. Read more
Apartment transactions down for 6th month
According to REINS, 2,938 apartments were sold across greater Tokyo in September, up 38.7% from the previous month but down 5.9% from last year. This is the 6th month in a row to see a decline from one year prior. The average apartment sale price across greater Tokyo was 27,500,000 Yen, down 2.5% from the previous month but up 3.6% from last year. The average price per square meter was 424,600 Yen, down 2.8% from the previous month but up 3.7% from last year. The average building age was 19.81 years.
1,425 apartments were sold in the Tokyo metropolitan area, up 42.1% from the previous month but down 8.6% from last year. This is the 6th month in a row to see a decline from one year prior. The average apartment sale price was 33,780,000 Yen, down 3.1% from the previous month but up 5.7% from last year. The average price per square meter was 568,200 Yen, down 3.3% from the previous month but up 7.6% from last year. The average building age was 18.72 years.Read more
Sumitomo Forestry announces new luxury home plans
Sumitomo Forestry announced a new luxury home design and construction service aimed at wealthy clients who are seeking meticulously designed and well-appointed residences.
A model house in the Komazawa Koen Housing Gallery in Setagaya-ku is scheduled to open on October 17, while pre-inspections are currently available by appointment only. Another model house will open in Nagoya City. Both homes were designed by Design Partner Group.
The Komazawa model house was designed to reflect contemporary and traditional Japanese styles in an urban setting. All rooms open onto a central courtyard which provides light, air flow and a spot for greenery. Interior designer Yukio Hashimoto was in charge of the interiors, with special touches including traditional Japanese plaster, lacquering, gold and silver leaf and shoji sliding doors. Read more
Earthquake-retrofitting an unpopular choice despite government assistance
Not far from Shin Osaka Station is a 11-storey, 40 year old apartment building that was built to the older earthquake codes (called kyu-taishin). A member of the building owners’ association said that the building has been carefully maintained over the years with new flooring in the common areas and re-painting of the exterior walls. However, no efforts have been made to retrofit the building for earthquakes. They are also yet to conduct any official earthquake-resistant building diagnosis, although they did consult with an architect several years ago. The architect’s opinion was that retrofitting was absolutely necessary and could cost around 100 million Yen.
The building, with 100 apartments, has 90 million Yen in the repair fund. If they were to carry out retrofitting, the building management and repair fees charged to each apartment owner would have to double. The issue about retrofitting is brought up each year at the owners’ association annual meeting, but those in favour are in the minority.Read more
Residential yields and vacancy rates in Minato-ku - October 2014
According to real estate listing site Homes, the average gross yield on an apartment in Minato-ku in October was 5.0%, down 0.6 points from the previous month and down 0.8 points from last year. The average gross yield across Tokyo was 6.9%, down 0.1 points from the previous month and down 0.8 points from last year.
The vacancy rate remains unchanged at 9.9% in Minato-ku and 11.0% across Tokyo.
The average asking price of a secondhand apartment in Minato-ku was 797,243 Yen/sqm as of October 1, down 0.9% from the previous month but up 15.9% from last year. The average asking price for land was 1,278,181 Yen/sqm, down 0.07% from the previous month but up 22.4% from last year.Read more
Shibuya mistakenly buys ryokan with X-rated past
Shibuya’s local government has found itself in hot water after it was discovered that a building purchased as a retreat had previously been used as a studio for filming adult movies.
The ‘Kikusuikan’ hotel is located in the hot spring town of Kawazu in Shizuoka Prefecture. The building and land was purchased by the Shibuya local government in April 2014 for 110,000,000 Yen and is scheduled to open in October. Total acquisition and renovation costs are expected to reach 228,000,000 Yen.
According to a Shibuya ward assemblyman, Kikusuikan was used as a location for 11 adult films between 2006 and 2013. City office officials, however, deny having any knowledge of this fact and were only made aware after it was reported in a weekly publication.
Taking into account the building’s ‘history’ an independent real estate appraiser valued the property at 40,000,000 Yen.
Sources:
The Asahi Shimbun, September 25, 2014.
The Mainichi Shimbun, September 24, 2014.