NTT Urban Development and renovation company Rebita have converted a 27-year old former expat rental apartment building in Azabujuban into condominium units for individual sale.
The building, now called IKSIKS Azabujuban, is a 6-storey building completed in 1989. It was originally called Sun Palace Minamiazabu, and apartments were renting for around 3,300 ~ 3,500 Yen/sqm per month until recently. Several apartments are still occupied by tenants and won’t be available until the tenants agree to move out.
NTT acquired the building in 2015. Renovations were completed at the end of last month, and three of the thirteen apartments in the building are already under contract.
Apartment sizes range from 96 ~ 160 sqm (1,033 ~ 1,722 sq.ft), which is larger than the typical 50 ~ 70 sqm apartments found in most new developments. Prices range from 150 ~ 220 million Yen (approx. 1.46 ~ 2.15 million USD).
A 3-Bedroom, 122 sqm apartment on the 2nd floor is priced at 149,800,000 Yen (approx. 1.466 million USD), which is around 1,226,000 Yen/sqm.
Although the building is located in the enviable Minamiazabu 1 Chome address, it is in the low-lying, densely packed semi-industrial area, which is quite a different neighbourhood to the upscale residential neighbourhood just up the hill.
Real estate in central Tokyo’s prime locations may be considered by investors to be a relatively stable store of value over the long-term. Demand for properties from both individual buyers and investors as well as funds and real estate developers is extremely high, which has tightened supply. Developers are having trouble finding sites for new developments and have been forced to consider refurbishing and converting existing buildings.
NTT plans to renovate one or two buildings each year.
Source: NTT Urban Development News Release, August 3, 2016.