Construction of The Parkhouse Shinjuku Gyoen, a 14-storey condominium located directly across the street from the Shinjuku Gyoen National Garden, reached completion last month.
The building contains 52 luxury residences ranging in size from 55 ~ 100 sqm (592 ~ 1,076 sq ft). When sales began back in early 2016, apartments were priced from 64 ~ 269 million Yen, with an average price of around 1,725,000 Yen/sqm.
According to the Real Estate Economic Institute, 2,921 new apartments were released for sale in October, up 20.2% from the previous month but down 6.5% from last year. This is the second month in a row to see a decline in supply from the previous year and has been attributed to both an increase in prices as well as the discovery of a faulty condominium in Yokohama last month which has caused turmoil in the real estate industry. Before news broke of the construction mishap, the Institute were predicting 3,500 apartments to be offered for sale in October. Although Autumn is typically a period of heavy sales activity by developers, the sales of several projects were delayed due to the uncertainty following the Yokohama apartment scandal. Only one large-scale project (a building containing over 100 units) went on sale in October, down from four large-scale projects last year.
A researcher from the Institute said that visitor numbers to apartment show rooms were relatively flat, and it is possible that developers will continue to delay sales until consumer confidence in the new apartment market improves.
2,010 apartments were sold, making the contract rate 68.8%, up 2.8 points from the previous month and up 5.5 points from last year.
475 apartments in high-rise buildings (over 20 storeys) were offered for sale, up 36.5% from last year. The contract rate was 79.8%.
The average price of a brand new apartment released for sale in greater Tokyo was 53,640,000 Yen, down 0.5% from the previous month but up 17.6% from last year. The average price per square meter was 759,000 Yen, down 0.3% from the previous month but up 19.0% from last year.
According to the Real Estate Economic Institute, 3,495 new apartments were released for sale across Greater Tokyo in May, up 52.9% from the previous month but down 18.7% from last year. This is the fifth month in a row to see a year-on-year drop in supply.
2,486 apartments were sold, making the contract rate 71.1%. This is a decline of 4.4 points from the previous month and 7.8 points from last year.
The average new apartment price was 48,120,000 Yen, down 9.3% from the previous month and down 6.7% from last year. The average price per square meter was 679,000 Yen, down 10.4% from the previous month and down 6.0% from last year.
The large redevelopment on the eastern side of Meguro Station is garnering a large amount of attention with the sales office overwhelmed with inquiries. Tours of the sales showroom are now booked solid for the next two months. The sales office received 18,000 requests for property brochures, three times the number they had anticipated. Many of the inquiries were from prospective buyers in their 30s and 40s. A third of the inquiries were from residents in Shinagawa, Meguro and Minato-ku.
The model room opened in early April, and the first round of sales is scheduled to start in early June. Apartments will be offered for sale in stages, with almost 40% of the apartments being offered in the first round. Interested buyers will be required to submit applications during the sales periods, with lucky buyers selected via a lottery-type system.
The 80 billion Yen project includes two residential towers containing 940 apartments and a 27-storey office tower. Tokyo Tatemono, Daiichi Life Insurance, Taisei Kensetsu and Takenaka Corporation are the four developers.
All 28 apartments offered during the first round of sales in Mitsubishi Jisho Residence’s The Parkhouse Higashi Ginza sold out on the same day.
The 13-storey apartment building is located a 1 minute walk from Shintomicho Station and is 700 meters from Ginza’s Chuo Dori Street. Apartments range in size from 70 ~ 81 sqm (753 ~ 872 sqft) and are all 3-bedrooms. Prices ranged from 74 ~ 108 million Yen (640,000 ~ 920,000 USD), with an average price of around 1,240,000 Yen/sqm.
The sales office received 1,587 inquiries and had 276 groups visit the showroom. Each apartment received an average of 1.9 purchase applications, with the most popular apartment receiving 5 applications. The lucky buyers were selected via a lottery-type system.
According to the Real Estate Economic Institute, 3,125 brand new apartments were released for sale in greater Tokyo in October, down 6.3% from the previous month and down 10.9% from last year. This is the 9th month in a row to see a year-on-year decline in supply.
The drop in supply is due primarily to an expected drop in demand following the increase in consumption tax in April 2014, as well as rising construction costs which are limiting the viability of many projects for developers. Sales for apartments priced under 40 million Yen have become particularly slow in recent months.
With recent data showing the second consecutive quarter of negative GDP growth in Japan, it seems highly probable that the next planned increase in the consumption tax rate will be delayed. A spokesperson from the Institute believes a delay in the next tax rise will provide a very positive benefit for the market.
1,978 apartments were sold, making the contract rate 63.3%, down 8.3 points from the previous month and down 16.3 points from last year. This is the lowest contract rate seen since February 2009 when it reached 61.7%. This is also the second month in a row where the rate has dropped below the 70% level which is considered to be the line between a positive and negative market conditions.
Mori Trust will begin sales of apartments in their latest luxury development – Foretseine Akasaka Hinokizaka – at the end of November, with most apartments priced in the 300 million Yen range.
41 of the 54 apartments will be offered for sale with the remaining 13 going to the original landholder. Apartments range in size from 73.46 ~ 170.46 sqm and will be priced from around 110 ~ 470 million Yen.
The 7-storey building is located in an exclusive and historically high-priced area at the peak of Hinoki-zaka slope near Tokyo Midtown. It is next door to Proud Akasaka Hikawacho (2007; prices around 2,000,000 Yen/sqm) and across the street from Park Mansion Roppongi (2007; prices around 1,900,000 ~ 2,500,000 Yen/sqm).
Previews of the model room will start tomorrow (October 18).
Park Court Akasaka Sakurazaka is located down the street from the official residence of the US Ambassador as well as Hotel Okura. It is also across the street from Saion Sakurazaka and is a short walk from the ANA Hotel and Ark Hills.
When new, apartments were priced from 118 ~ 355 million Yen, with an average price of around 2,140,000 Yen/sqm. Sales began in February 2015 and all apartments had sold out by July 2015.
The ceiling heights in the living/dining rooms are up to 2,800mm, which is higher than the 2,600 ~ 2,700mm seen in other luxury condominiums.
This area is undergoing a number of large-scale and high-end redevelopment projects including the redevelopment of Hotel Okura, the Akasaka 1 Chome Redevelopment, the redevelopment of the Toranomon Hospital and National Printing Bureau, and the redevelopment of Akasaka Twin Tower.