Japan's Standard Land Prices increase by 1.0% in 2023
Japan’s Standard Land Prices were announced on September 19, and as the pandemic winds down and dwellers and tourists return to central hubs, the major urban centers saw the steepest increase.
Nationwide, land prices across all uses increased by 1.0%, following a 0.3% increase in 2022. Regional areas saw the first increase across all uses for the first time in 31 years; however, this may have been driven by growth in cities such as Sapporo, Sendai, Hiroshima, and Fukuoka. Residential land outside of those cities continued to decline, while commercial land increased for the first time in 32 years.Read more
Tokyo apartment rents up 11.9% y-o-y
After remaining relatively subdued throughout the pandemic, apartment rents in Tokyo’s 23 wards are on the rise, increasing by 8% since the start of the year.
The average monthly rent of a condominium apartment in the 23 wards was 4,266 Yen/sqm as of August, up 2.3% from the previous month and up 11.9% from last year. This has exceeded the previous record high set in July. Read more
Luxury hotel in Sapporo now a casualty of rising construction costs
Plans for a luxury hotel to crown the top of a high-rise project in front of Sapporo Station in Hokkaido have been scrapped due to rapidly rising construction costs. The upper floors will, instead, be office space to cater to the high demand from office tenants in central Sapporo.Read more
New high-rise development announced for west side of Shinagawa Station
On August 29, Keikyu Corporation and East Japan Railway Company released details on the Shinagawa Station District Redevelopment Project that will see three buildings on a 3.3 hectare site on the western side of the station.Read more
Apartment-hotel sells for 69 million Yen per key
Daiwa House REIT Investment Corporation has acquired the trust beneficiary rights to a 74-room hotel in Tokyo for 5.114 billion Yen (approx. US$35 million). The appraised NOI yield was 4.0% (3.5% after depreciation).Read more
Omotesando retail sells for over 5 billion Yen
A 3-story retail building alongside Kotto-dori Street in Omotesando has reportedly sold for 5.383 billion Yen (approx. US$37 million). The seller was the Japan Metropolitan Fund Investment Corporation, a J-REIT. The buyer was not disclosed but is a domestic corporation.Read more
Rapidly rising condo prices causing rental renaissance in Japan
An interesting shift is underway in the rental market as investors and developers see the potential in roomier apartments. This has been spurred on by the rising price of condominiums. Would-be home buyers priced out of the market are renting instead, leading to a new influx of tenants.Read more
Demolition starts on 56-yr old building in Akasaka
Demolition of the 56-year old Sankaido Building near the US Embassy will start this month. The building is making way for a new redevelopment project by Norin Suisan Shoreikai and construction giant Kajima Corporation.Read more
Osaka office building sells at 3.5% cap rate
A 13-story office building in Osaka has been acquired by a J-REIT for 17.215 billion Yen (approx. US$121 million). Japan Real Estate Investment Corporation purchased Forecast Sakaisuji Hommachi on August 1 with delivery to take place by the end of the month. The seller was not named.Read more
Star Asia to acquire 11 assets for 49.1 billion Yen
Star Asia Investment Corporation is acquiring seven hotels and four apartment buildings across Japan for 49.1 billion Yen (approx. US$343 million). The appraised cap rate is 4.8%.Read more