Takashimaya pays 442 million USD for two office buildings in Nihonbashi
Takeda Pharmaceutical has sold two of their buildings in downtown Tokyo to the Takashimaya Department Store for a reported price of 49.5 billion Yen (approx. 442 million USD). Delivery of the buildings is scheduled for March 2019. Both properties were owned by Takeda’s real estate division. Takeda will be putting the proceeds from the sale towards their research for new cancer treatments.
The Tokyo Takeda Building and adjoining Takeda Shin Edobashi Building are located a block behind Takashimaya’s Nihonbashi store. The block to the north and east of the historic department store is currently being redeveloped into two high-rise office towers ranging from 140 ~ 176 meters tall and with completion expected in early 2018 and early 2019.Read more
Apartment asking prices in Tokyo in October 2017
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) apartment across Greater Tokyo was 35,810,000 Yen in October 2017, up 0.7% from the previous month but down 1.1% from last year. The average building age was 23.0 years.
In Tokyo’s 23 wards the average asking price was 52,920,000 Yen, showing no change from the previous month but up 0.9% from last year. The average building age was 22.6 years.Read more
Tokyu expanding development of luxury condominiums in Tokyo
To cater to growing demand, Tokyu Land is expanding the development of 100 million Yen+ condominiums in central Tokyo’s six wards. They currently have four high-end projects under development in Tokyo and have increased their sales staff by 20%. Their target buyers are wealthy seniors and dual-income households.
Two of their luxury projects include Branz Roppongi The Residence (Minato-ku) and Branz Nagatacho (Chiyoda-ku). Branz Roppongi The Residence is a 51-unit, 8-storey building located 200 meters from Tokyo Midtown. Completion is scheduled for February 2019. The average apartment price is 550 million Yen (approx. 4.9 million USD), and 40% of the apartments have already sold off-the-plan.Read more
Roppongi has the lowest rental yields in Tokyo
According to Tokyo Kantei, brand new apartments within walking distance of Roppongi Station had the lowest rental yields in greater Tokyo with an estimated gross return of 2.34%. Across greater Tokyo the average gross yield on a new apartment was 4.44%, and as high as 6.19% for 30 year old apartments.
Yields reflect risk and tend to be lower in areas with high rental and sales demand. They also tend to be higher for older buildings to reflect a variety of factors such as higher maintenance costs, lower rental demand and rents that decline at a slower rate than property values.Read more
The Parkhouse Nishi-Shinjuku Tower 60 reaches completion
Construction of Japan’s tallest apartment building based on total floor count has reached completion this month. The Parkhouse Nishi-Shinjuku Tower 60 is a 60-storey, 209 meter tall condominium located to the west of the Shinjuku business district.
It may not keep its title as the tallest building based on floor count for long - two 65~66-storey, 235m tall apartment buildings with as many as 3,200 apartments are tentatively planned for a site on the eastern side of Shinjuku’s Park Hyatt Hotel and less than 1,000 meters south of The Parkhouse.
Apartment asking prices across greater Tokyo drop slightly in September
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) apartment across greater Tokyo was 35,550,000 Yen in September 2017, down 0.3% from the previous month but up 0.7% from last year. The average building age was 23.1 years.
In Tokyo’s 23 wards the average asking price was 52,920,000 Yen, down 0.9% from the previous month but up 0.5% from last year. The average building age was 22.7 years. Saitama City saw average asking prices increase by 2.0% from the previous month and 10.4% from last year.
Tokyo office rents increase for 45th consecutive month
According to Miki Shoji, the average monthly office rent in central Tokyo’s five business districts reached 18,995 Yen per Tsubo (approx. 5,747 Yen/sqm) in September, an increase of 3.59% from last year and the 45th month in a row to record a year-on-year increase. The average is still 17% below the recent record high of 22,901 Yen/Tsubo (6,929 Yen/sqm) seen in August 2008.