Tokyo office vacancy rates reach 6.28%
According to office brokerage Miki Shoji, the average office vacancy rate across Tokyo’s five business districts of Chiyoda, Chuo, Minato, Shinjuku, and Shibuya, was 6.28% in July 2021, up 0.09 points from the previous month and up 3.51 points from last year.
Tokyo apartment inventory continues to decline while prices rise
According to REINS, the total number of second-hand apartments sold across greater Tokyo in July saw a year-on-year drop for the first time in five months, while the average sale price per square meter increased for the 15th month in a row.
How age affects house prices
One of the factors that affect the pricing of a home or apartment in Japan (and other countries) is the age of a building, with newer construction typically priced at a premium. This is because older homes and apartments can become out-of-date and lack the modern amenities, interior finishes and latest trends found in newer construction. All other things being equal, an old and tattered apartment from the 1960s with no elevator, insulation, and low ceilings is not going to sell for as much as a brand-new one built to the latest specs. Changes to earthquake-resistant construction methods over the decades make the price divide even more apparent in Japan.
Tokyo Apartment Sales in July 2021
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of July 2021:
Average discount on an apartment sold in 2020
According to Tokyo Kantei, the average percentage discount between the list price and sale price of a second-hand apartment across greater Tokyo reached a 10-year low in the second half of 2020. In other words, discounts are shrinking.
Former ryokan in Gotanda to become 30-story condo
Asahi Kasei Realty & Residence Corporation is planning a 30-story apartment building for the site of a former ryokan in Gotanda, Tokyo. This property was at the center of a notorious land swindle in 2017 that saw another developer lose 5.5 billion Yen to fraudsters that pretended to own the land.
Nakano Sun Plaza to be redeveloped by 2028
Nakano Sun Plaza, a 48-year old hotel and concert building in Tokyo’s Nakano ward, will be demolished in 2024 and replaced with a new mixed-use building by 2028. The 181 billion Yen (approx. 1.7 billion USD) project will include a 235-meter tall mixed-use office and residential tower with a concert hall and hotel on the lower floors.