The following is a selection of apartments that were reported to have sold in central Tokyo during the month of September 2018:
According to Tokyo Kantei, the average asking price of a 70 sqm (753 sq.ft) second-hand apartment across greater Tokyo was 36,400,000 Yen in August, up 0.2% from the previous month and up 2.1% from last year. The average building age was 23.9 years.
When working with expat or non-resident clients on real estate deals in Japan, the process can easily take 3 times as much time and effort when compared to a domestic Japanese client. There are only small number of real estate agencies in Japan that are truly well versed in working with foreign clients. For the majority of domestic-oriented agencies, foreign clients are often seen as being too challenging and involving too much hassle. We often encounter local listing agents that have no experience with transactions involving a foreign buyer, so it is our job to assure them that the transaction can go as smoothly as it would be with a local Japanese buyer.
While Nagano’s urban areas are seeing a slowing in the rate of decline in land prices, one district in the prefecture is seeing no end to eroding land values.
The Hirao district in Yamanouchi Town, known for being home to the Jigokudani Monkey Park and several ski areas, is also home to the steepest drop in both commercial and residential land values in the prefecture. According to the Standard Land Prices issued by the Ministry of Land, Infrastructure, Transport and Tourism, the rate of decline at several survey locations in Hirao worsened in 2018. Land values dropped by between 2 ~ 4% in 2018. In some locations land prices have declined year-on-year since the late 1990s.
This month, two companies that both specialize in operating short-term Airbnb-style letting, have been issued cease-and-desist orders from Kyoto City for providing accommodation without the required licenses or permissions. These are the first crackdowns in Japan since the new short-term accommodation law was introduced on June 15, 2018. Hosts found operating illegally now face fines of up to 1 million Yen (approx. 8,900 USD).
Plans for a 190m tall, 50-storey, 750-unit apartment tower on the manmade island of Tsukishima in Tokyo Bay have local residents up in arms.
The following is a summary of the recent information that has come out since the share house and whole-building investment scam scandal has been exposed in Japan.
Inflated rental projections
Guaranteed or estimated market rents were set much higher than actual market rents in order to inflate yields and sale prices. Share houses were perfect for this since it can be difficult to gauge appropriate market rent, making it easy to inflate figures. Share houses operated by one defunct operator were running at occupancy ratios of just 20%.
There are plans to redevelop the former Namegawa Island zoo and garden in Chiba Prefecture into a 228-room resort hotel. Construction on the tentatively-named Katsuura Seaside Park Resort is scheduled to start in 2020 with completion by 2024.
Yesterday the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the Standard Land Prices for 2018. The average standard land price across Japan increased by 0.1% – the first increase since 1991. This follows a 0.3% drop recorded in 2017.
According to the Real Estate Economic Institute, the supply of brand new apartments across greater Tokyo in August reached the lowest level seen for the month since 1993. A total of 1,502 new apartments were released for sale, down 49.7% from the previous month and down 28.5% from last year.