A quick look at Japan’s apartment prices over the past 50 years

The Real Estate Economic Institute published a recent report looking back at Japan’s condominium-type apartment market over the past 50 years. The country has experienced a number of economic cycles over the past five decades, including the 1970s oil crisis, the 1980s asset bubble and subsequent crash in the early 1990s, oversupply of new condos between the mid 1990s and mid 2000s, the 2007-2008 global financial crisis, and, more recently, over a decade of loose monetary policy and low interest rates.Read more

Land transactions in Tokyo increase in 2022

Even though 2023 is drawing to a close, some market data takes a long time to be released. On November 16, the Tokyo Metropolitan Government released its report on the local real estate market for land in the 23 wards for 2022.  Let’s look at a summary of the important points below:Read more

Why did this apartment building in Shinagawa sell at a low price?

Last month, a J-REIT announced the sale of a 120-unit multi-family building near Shinagawa for 2.9 billion Yen (approx. US$19.8 million) to an unnamed buyer with handover to take place in April 2024.

The 15-story Residia Kita-Shinagawa rental apartment building sold with a cap rate of 4.6% based on the appraised value, while most multi-family buildings in central Tokyo currently have cap rates around the 3% range.Read more

Here’s where apartment rents are increasing the most across Japan

Rents for more spacious ‘family-type’ apartments in Japan’s major cities reached record highs in October, according to a report released by multiple-listing provider and data aggregator AtHome. The larger-sized rental housing is becoming an interesting segment of the market to observe as would-be homebuyers are starting to shift to rental housing as they become priced out of the condo market.Read more

Asakusa hotel on leasehold land sells at 65 million Yen per key

Despite being on leasehold land, this recently-built hotel in Asakusa sold last week for 65.5 million Yen per key (approx. US$460,000). The Nomura Real Estate Master Fund entered into an agreement to acquire the Mimaru Suites Tokyo Asakusa hotel on December 14 for 2.36 billion Yen (US$16.57 million) with delivery to take place in April 2024.Read more

Tokyo’s apartment rents increase 0.2% in November

According to Tokyo Kantei, the average monthly rent of a condominium-type apartment in Tokyo’s 23 wards was 4,236 Yen/m2 in November, up 0.2% from the previous month and up 10.7% from last year.Read more

Office vacancy rate in Tokyo hits 33-month low

The office vacancy rate for existing buildings in central Tokyo’s five business districts reached a 33-month low in October. According to office brokerage Miki Shoji, the vacancy rate was 5.36%, down 0.71 points from last year and the 16th month in a row to record a year-on-year decrease.  During the month, around 4,000 tsubo (13,220 sqm or 142,000 sq.ft) of space was absorbed thanks to some large-scale leases.Read more