Omotesando is one of the most sought-after retail and residential addresses in Japan, and is the most in-demand location for our clients. It has a vibrant cafe and shopping scene, while also offering laid-back, quiet neighbourhoods filled with a mix of old and new homes, small boutiques, galleries and restaurants.
Unfortunately, being the most popular location means that supply is very limited, and becoming part of Japan’s most fashionable neighbourhood means buyers are up against a lot of strong competition. Earlier this year a low-rise condominium in Minami Aoyama 5 Chome went on sale. The 20 apartments offered for sale received 193 offers from buyers, with one apartment receiving 63 offers. Apartments had an average price of around 2,300,000 Yen/sqm when new. The building, The Parkhouse Gran Minami Aoyama, is still under construction and will be completed in late 2016.
Residential land in Omotesando ranges from 1,500,000 ~ 2,500,000 Yen/sqm for sites suitable for single homes. Expect to pay more the closer you get to the station.
The standard land price (kijun-chika) for a survey site located at Minami Aoyama 5-1-27 (near the Omotesando intersection) was 11,600,000 Yen/sqm in 2015, up 20.2% from 2014. Meanwhile, a residential site in Minami Aoyama 4-26-18 (near Nezu Museum) increased by 8.1% from 2014 to 1,470,000 Yen/sqm.
Newer apartments may be priced from 2,000,000 ~ 3,000,000 Yen/sqm, while older apartments may be 1,000,000 ~ 1,800,000 Yen/sqm.
Omotesando is one of those areas where even the older, 30 ~ 40 year old buildings are just as much in demand as newer ones. The vintage Minami Aoyama Daiichi Mansions apartment building located right above Omotesando Station is one example. In August, a 112 sqm apartment in the 45-year old building sold for 198,000,000 Yen within a month of listing. There have only been six reported sales in this building in the past 25 years.
Rental yields on residential and retail properties are low (expect gross returns of 3-4%) due to rising prices and the prime location. Retail buildings range in price from 300 million yen for a small shop building in the back streets up to 35 billion Yen or more for the architect-designed retail buildings fronting the tree-lined Omotesando Dori Avenue. In July 2015, Prada, via a special purpose company, acquired their Herzog & De Meuron-designed boutique building on Miyuki-dori Avenue with a mortgage of 36 billion Yen. Prada will continue to lease the building back from their SPC for 100 million Yen/month, increasing to 130 million Yen/month from 2016 onwards.
Let’s take a look at some of the residential properties currently for sale in the Omotesando area, which includes the Jingumae and Minami Aoyama addresses. (Commercial/retail listings may be available but cannot be publicised in accordance with sellers requests.)
|Jingumae 3 House|
|Jingumae 3-9 House||NO LONGER AVAILABLE|
|Aoyama Park Tower Apt. 27F||NO LONGER AVAILABLE|
|Proud Minami Aoyama Apt. 2F||NO LONGER AVAILABLE|
|Minami Aoyama Toyoda Park Mansion Apt. 1F||NO LONGER AVAILABLE|
|Park Court Omotesando Apt. 1F||NO LONGER AVAILABLE|
|Open Residencia Minami Aoyama Apt. 7F||NO LONGER AVAILABLE|