According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the total floor space of buildings across Japan totaled 7.73 billion square meters (approx. 83 billion sq.ft) as at January 1, 2018, a 0.2% increase from last year. Housing stock, including both private and public housing, saw a 0.2% rise and accounted for 74.3% of the total.
The fraudulent investment scandal, propelled by Suruga Bank, is having far reaching consequences for the investment property market with investors, even legitimate ones, finding it increasingly difficult to obtain financing. Since the start of the year, the price of investment properties has fallen. Meanwhile, outstanding loans to private investors has reached 23 trillion Yen (approx. 202 billion USD).
Kyoto City’s most expensive apartment building since 1995 is already close to selling out prior to the start of official sales. 90% of the apartments in The Kyoto Residence Gosho-Higashi have already been pre-sold to buyers, with the remaining 4 units offered in the first round of public sales held on October 13th.
According to REINS, 3,244 second-hand apartments were sold across greater Tokyo in September, up 40.9% from the previous month and up 0.7% from last year. The average sale price was 32,920,000 Yen, down 0.8% from the previous month but up 2.0% from last year. The average price per square meter was 513,900 Yen, down 1.4% from the previous month but up 1.4% from last year. This is the 69th month in a row to record a year-on-year increase in prices.
On October 1, real estate corporation HULIC opened their latest small luxury resort near Lake Kawaguchi. ‘Fufu Kawaguchiko’ is part of HULIC’s Fufu brand of luxury ryokans.
Niigata City is losing major retail players due to a declining population and a shift in consumer habits towards online shopping and larger suburban malls. On September 26, Isetan Mitsukoshi Holdings announced the planned closure of their Mitsukoshi Department Store in the city by March 2020. The closure is expected to worsen the decline in the city center’s retail district.
Katsuyama City in Fukui Prefecture has given up on their attempt to auction off a foreclosed pagoda and temple property due to a lack of buyers.
Domestic sales in The Parkhouse Shibuya Nanpeidai are scheduled to start at the end of this month, with 35 units on offer.Pre-sales to overseas investors in Hong Kong started in 2017. The 10-storey condominium is located a 7 minute walk from Shibuya Station and 300 meters from Cerulean Tower. This is the first new condominium to go on sale in the Nanpeidai address in 11 years.
The Tokyo Metropolitan Government is in talks to buy the National Children’s Castle building and land in Shibuya from the national government. The once popular arts and entertainment complex closed its doors in 2015, ending 30 years of operations.
On October 3, LaSalle Investment Management, headquartered in Chicago, announced the purchase of Midosuji Front Tower in Osaka’s Umeda district through their Frontier Property LLC, signalling the end of the building’s 8 year vacancy. The sale price was not disclosed.
Midosuji Front Tower was completed in 2010. It has sat vacant ever since due to a dispute between the owners.