A house and land in Tokyo’s Motoazabu address sold for 1.16 billion Yen (approx. 10.5 million USD) at a public auction last month. The sale, conducted by Osaka City, attracted seven bidders, including one well-known developer. The City had set a reserve price of 673,261,700 Yen.
The sale represents a price of 4,333,000 Yen per square meter (approx. 3,600 USD/sq.ft) for the land. Land at a nearby survey site had a chika-koji government assessed land value of 2,300,000 Yen/sqm in 2018, up 5.02% from 2017 and the 6th year in a row to see an annual increase. Assessed land values are up 35% from 2012, but still 70% below the peak of 7,620,000 Yen/sqm seen in 1988.
The property includes a 268 sqm block of freehold land and is 350 meters from Arisugawa Park and 900 meters from Roppongi Hills. Large, single-family homes in this part of the Motoazabu address can easily be valued at over 1 billion Yen, depending on lot size, but properties are often tightly held for generations.
City of Osaka Homepage, July 20, 2018.
Construction News CORP, July 11, 2018.