Are the Olympics artificially pushing up property prices in Tokyo?

September 5, 2014Tokyo 2020 Summer OlympicsReal Estate News,Market Information,All,Tokyo,Tokyo 2020 Olympics

When it was announced that Tokyo would host the 2020 Summer Olympics, owners of high-rise apartments in Tokyo’s bayside area (an area will host the Athletes Village and several sporting events) were naturally excited by the news. Apartment sales offices saw a dramatic increase in demand from buyers who feel certain that the Olympics is going to push up real estate values in the area.

In an article in the Nikkei Business publication, Eugene Oki from Attractors Lab suggests that recent price rises in the bayside islands may lack the substance to continue at current rates, and urges buyers to take a careful look at the factors behind market trends.

The Olympics will bring much needed infrastructure such as sports facilities and a bus lane to the bayside area of Ariake, Harumi and Kachidoki, but the Olympic games alone are not going to be a strong enough reason for the extension of a subway or train line. Retail and other facilities that improve the quality of life will also take some time to create. As such, it is difficult to say whether the current increase in real estate prices can be maintained after the Olympics are over.

Price growth is heavily dependent on trains and subways, not buses

The biggest influence on price growth in a particular area is the development of train or subway lines. In Japan, a bus route or buss rapid transit (BRT) has rarely been shown to improve property values.

There are plans to introduce a BRT that would connect Harumi Island with the Ginza district. While access to Ginza may sound appealing, the majority of residents in the island areas need access to business areas such as Otemachi, Marunouchi, Shinagawa and Shinjuku. Rather than stopping at Ginza, a bus to Yurakucho Station on the JR Yamanote Loop Line would at least provide commuters with an easier switch to the train system.Read more

by Zoe Ward

Family-type apartments shrinking in size as prices reach upper limits

September 4, 2014Real Estate News,All

The typical family-sized 3-bedroom apartment in Japan is said to be around 70 sqm (753 sqft), but it is now becoming increasingly common to see developers offering family-type apartments in the 50 ~ 60 sqm (538 ~ 645 sqft) range. With rising construction and land prices, developers are shrinking apartment sizes in order to keep sale prices within the budget of their target buyers.

This month, Secom Homelife will begin sales of family-oriented apartments in Suginami-ku, Tokyo. 3-Bedroom apartments in Glorio Eifukucho Izumi will be 57 ~ 59 sqm (613 ~ 635 sqft) in size and priced in the 60 million Yen range. 2-Bedroom apartments start from 42 sqm (452 sqft). If apartments in this building were 70 sqm in size, they would need to be priced over 80,000,000 Yen - above the budget of most buyers.Read more

by Zoe Ward

Tokyo apartment sales in August 2014

September 3, 2014Real Estate News,Market Information,All,Tokyo

Tokyo Apartment Sales in August

The following is selection of apartments that were sold in central Tokyo during the month of August 2014:Read more

by Zoe Ward

Mizuho Bank to offer home equity loans

September 2, 2014Real Estate News,All,Home Loans / Mortgages

Mizuho Bank are now offering home equity loans of up to 10 million Yen to home owners. Mizuho is the first of Japan’s three mega-banks (Mizuho, MUFJ and SMBC) to offer a home equity financing.

Interest rates are floating and were 2.975% in August. This rate is lower than their rates for personal loans. Customers of Mizuho with existing home loans may receive a rate of 2.675%.

Loans range from 1 ~ 10 million Yen and will be determined based on the equity in the property and the borrower’s financial position. Borrowers can use the funds freely, but cannot put them towards company capital or the purchase of financial products.

Sources:
The Nikkei Shimbun, August 21, 2014.
The Sankei Shimbun, August 21, 2014.
Mizuho Bank Home Equity Loan page

by Zoe Ward

Google launches disaster prevention map for Tokyo

September 1, 2014Earthquake Information,Living in Tokyo,All,Tokyo

Tokyo Hazard Map
Fire hazard map for Tokyo

Google’s Crisis Response Team have released a disaster prevention map for Tokyo. The map shows the various risk levels for building collapse, fire and evacuation hazards, as well as the location of evacuation zones, public pay phones and tsunami evacuation buildings.

Zones are based on data supplied by the Tokyo Metropolitan Government. The local government has provided this data online for several years, but the link up with Google Maps has provided a much easier user interface.Read more

by Zoe Ward

Warou Flat - Azabu’s oldest rental apartments

August 29, 2014Historic properties in Japan,Azabudai,Warou FlatHistoric Properties,All,Tokyo

Warou Flat Tokyo 4

Just a short walk from the bustling Azabu/Roppongi area there exists several pre-war apartments. Warou Flat is a small group of western-style rental apartments built between 1930 ~ 1937. There were originally five buildings, but only three remain. The buildings have been carefully maintained over the last 77 years and have so far managed to escape redevelopment. Read more

by Zoe Ward

Tax breaks and better home loan rates to boost Japan's second-hand home market

August 28, 2014Japan Property TaxesReal Estate News,Renovations,All,Home Loans / Mortgages

Journal Standard Renoveru 2
A renovated apartment in Kawasaki City by Renoveru (a collaboration between Journal Standard Furniture and ACME).

As part of a plan to support and boost the market for used homes, the Japanese government is considering introducing measures to encourage lower interest rates on mortgages that include a component for renovations as well as tax benefits for buyers of older homes.

Although there is growing demand from consumers for relatively cheaper existing homes, more than half require some form of work such as earthquake-retrofitting or upgrades to make them barrier-free for older occupants. It is hoped that easier financing will encourage more consumers to consider older homes and reduce the number of vacant homes across the country.

Expanding the Flat 35 Home Loan

The Japan Housing Finance Agency’s ‘Flat 35’ home loan offers interest rates from as low as 1.69%. Although the loan can be used for both new and old properties, it may soon be expanded to provide additional financing for renovation costs at the time of purchase.Read more

by Zoe Ward