Tokyo cancels refurbishment of Children’s Castle
On May 9, the Tokyo Metropolitan Government announced the cancellation of a planned refurbishment of the National Children’s Castle property in Omotesando. The property will continue to be used as an oxygen and medical care station for coronavirus patients.
The popular arts and entertainment complex closed in 2015. It was sold by the national government to Tokyo in 2019 for approximately 52 billion Yen.
Central Tokyo apartment resale values have increased by as much as 111%
According to Tokyo Kantei, an apartment in greater Tokyo has seen a 19.8% increase in its resale price over the past 10 years. That’s the average across a wide-spanning region that includes suburban areas in Saitama, Chiba and Kanagawa. In central Tokyo, the rate of growth has been much more staggering with some locations seeing prices increase by between 70 ~ 111%.
Tokyo’s office vacancy rate flattens in April
Tokyo’s office vacancy rate increased only slightly by 0.01 points to 6.38% in April as large-scale leases continued to be filled in existing buildings in the city center. Some tenants were relocating to be better located in Tokyo’s business districts. Vacant office space, too, saw little change from the previous month.
New data center planned for Nihonbashi
Real estate giant HULIC is embarking on a redevelopment project that will see an older office building demolished to make way for a new data center in Nihonbashi.
Price-earnings ratios for Tokyo apartments in 2021
With rental growth exceeding the increase in sale prices, the average price-earnings ratio (PER) for a brand-new apartment across greater Tokyo in 2021 was 24.56, down slightly from 2020 (24.69) but up from 2019 (24.36). A high PER means a low rental yield.
US fund buys 1,200 share houses
U.S. investment fund Lone Star is acquiring approximately 1,200 share houses from debtors that fell for a failed investment scam operated under the Kabocha-no-basha brand. The total acquisition price is estimated to be around 70 billion Yen (approx. US$536 million).
Meguro Gajoen back on the market
On May 11, the Toyo Keizai Online publication reported that China’s sovereign wealth fund is considering the sale of the landmark Meguro Gajoen hotel and office property in Tokyo.