Tokyo Apartment Sales in August 2017
The following is a selection of apartments that were sold in central Tokyo during the month of August 2017:Read more
Developer loses 6 billion Yen in fraudulent land sale
Major property developer Sekisui House has reported to have lost as much as 6.3 billion Yen (approx. 58 million USD) to scammers in a fraudulent land sale in central Tokyo.
According to a public announcement made by Sekisui earlier this month, they had agreed to purchase the property from a company that claimed to have already signed a tentative sales agreement with the alleged property owner. On the day of settlement, the property title was to be transferred from the original owner to the middle company and then to Sekisui. After the money had changed hands, the registry office (the government agency responsible for recording official changes in property titles) rejected the deed-change application because the title and identification documents from the alleged seller were falsified. By this point the ‘seller’ and associated parties had fled with the money and could not be contacted.
Tokyo apartment asking prices in July 2017
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq ft) second-hand apartment across greater Tokyo was 35,620,000 Yen in July, showing no change from the previous month but up 1.9% from last year. The average building age was 22.9 years.
In Tokyo’s 23 wards, the average asking price was 53,260,000 Yen, up 0.3% from the previous month and up 0.9% from last year. The average building age was 22.3 years.
In Tokyo’s central six wards (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo and Shibuya) the average asking price was 72,860,000 Yen, down 0.4% from the previous month but up 1.4% from last year. The average building age was 20.6 years.
Shinjuku office vacancy rate drops to 1% range
The office vacancy rate across Tokyo’s five central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya dropped to 3.22% in July, down 0.04 points from June and down 0.72 points from July 2016. This is close to the record low of of 3.03% reported in April 2008 and down from a high of 9.43% seen in June 2012.
The vacancy rate in existing buildings (excluding new construction) was 2.87% in July, down 0.74 points from last year.
In Shinjuku ward, the vacancy rate was 1.68%, down 0.06 points from the previous month and down 1.30 points from last year. The vacancy rate dropped to the 1% range in May 2017.
265m tall tower for Toranomon Hills district
More details have been released on the Toranomon Hills Station Tower which will be built on the north-west side of Toranomon Hills in central Tokyo. The building height will be 265 meters, which is 18 meters taller than the neighbouring Toranomon Hills tower and 17 meters taller that Tokyo Midtown.
Construction of the 49-storey tower is scheduled to start in 2019 with completion by 2022 2023.
Average apartment rent in July 2017
According to Tokyo Kantei, the average monthly rent of a condominium-type apartment across greater Tokyo in July 2017 was 2,631 Yen/sqm, up 0.5% from the previous month but down 0.8% from last year. The average apartment size was 60.03 sqm and the average building age was 20.8 years.
In the Tokyo metropolitan area the average monthly rent was 3,141 Yen/sqm, up 0.4% from the previous month but down 0.1% from last year. The average apartment size was 57.19 sqm and the average building age was 19.1 years.
In Tokyo’s 23 wards, the average monthly rent was 3,302 Yen/sqm, up 0.3% from the previous month but down 0.1% from last year. The average apartment size was 56.56 sqm and the average building age was 18.3 years.
New apartment prices in greater Tokyo up 16% from last year
According to the Real Estate Economic Institute, a total of 3,426 brand-new apartments were released for sale across greater Tokyo in July, up 50.0% from the previous month and up 3.3% from last year.
2,465 apartments were sold, resulting in a contract ratio of 71.9%, up 8.6 points from last year and above the 70.0% level said to indicate healthy market conditions. Unsold inventory at the end of July was 6,314 apartments, down 184 units from last year.
The average price of a new apartment across greater Tokyo was 65,620,000 Yen, up 16.3% from the previous month and up 16.0% from last year. The average sale price per square meter was 952,000 Yen, up 13.3% from the previous month and up 18.1% from last year.
705 apartments in high-rise buildings (20 storeys and above) were listed for sale, up 220.5% from last year. The contract ratio was 88.2%, up 34.1 points from last year.
The following buildings saw same-day sellouts* in July: