Residential leases are on the decline
The number of residential rental contracts signed across greater Tokyo has been on the decline for over a year now, with the effects being felt on real estate brokerages. Teikoku Databank reported 104 real estate brokerages filed for bankruptcy across greater Tokyo in 2019, up 6% from 2018.
Partial interest in Otemachi office tower sells for 99.8 billion Yen
Mitsubishi Estate has sold a partial interest in the Otemachi Park Building for 99.8 billion Yen (approx. US$974 million).
Why existing apartment sales are outperforming new construction
The old trope that Japanese buyers only buy new homes is being turned on its head as existing apartment sales now exceed new construction. In 2019, there were 38,109 reported sales of existing apartments across greater Tokyo (that figure is likely to be much higher due to a lack of public reporting of transactions). Over the same period, there were 31,238 brand new apartments offered for sale.
Suruga Bank restarts investment lending
According to several real estate companies, Suruga Bank has restarted lending on investment properties. Two years have passed since the bank found itself at the center of questionable lending schemes that saw it providing finance to over 1,200 investors in a wide-spread share house investment scam. The scandal saw the bank slapped with a six month ban on investment lending by the Financial Services Agency.
Tokyo Apartment Sales in February 2020
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of February 2020:
Bankruptcies continue at Japan’s ski resorts
Japan is seeing a growing number of ski resorts file for bankruptcy as warmer winters are causing less snowfall and shorter ski seasons. Over the past 20 years there have been 52 ski field operators file for bankruptcy. As global temperatures continue to rise, more closures are expected to follow.