More details have emerged of a possible high-rise apartment tower to be built in the Akasaka 7 Chome address. The Akasaka 7 Chome 2 District Redevelopment may include a 46-storey apartment building on the western side of the site with a maximum height of 157 meters, along with a 5-storey commercial/retail building on the eastern side of the site.
According to the quarterly LOOK report issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in the first quarter of 2018, land prices have increased in 91% of the surveyed locations. This is the first time the percentage has exceeded 90% in the history of reporting.
The main factors behind the rising land prices include positive conditions for the office market in central Tokyo, Osaka and Nagoya, major redevelopment projects, surging tourism numbers and expenditure, and strong demand for apartments that are close to transport. These factors are also encouraging investment into the office, retail, hotel and residential sector.
According to Tokyo Kantei, the average monthly rent of a condominium in Tokyo’s 23 wards was 3,496 Yen/sqm in May 2018, down 0.6% from the previous month but up 6.0% from last year. This is the sixth month in a row to see a year-on-year increase. The average apartment size was 55.79 sqm and the average building age was 18.5 years.
Additional details have been released for the residential apartment tower planned as part of the Shibuya City Office redevelopment. The new high-rise will be called Park Court Shibuya The Tower. The 39-storey apartment building will have 505 apartments, of which 355 will be made available for sale. Apartment sizes will range from 40 ~ 208 sqm (430 ~ 2,238 sq.ft).
This will be a leasehold property with the land to be returned to Shibuya City at the end of the 70-year term. The redevelopment of Shibuya’s City Hall will partly be covered by the land leasehold revenue. The new city hall buildings are due to open in January 2019, while the adjoining public hall will open in the following May.
According to REINS, 2,785 second-hand apartments were reported to have sold across greater Tokyo in May, down 14.0% from the previous month and down 6.6% from last year. The average sale price was 33,050,000 Yen, down 1.8% from the previous month but up 4.2% from last year. The average price per square meter was 510,700 Yen, down 1.9% from the previous month but up 3.2% from last year. This is the 65th month in a row to see a year-on-year increase in sale prices.
The two developers of a 107-unit condominium in Tokyo’s Bunkyo ward that lost its building permit two months prior to completion have lost their appeal against the city in a court ruling on May 24.
Construction of the 8-storey ‘Le Cinq Koishikawa Korakuen’ building began in 2013. In early November 2015, just two months prior to completion, the city revoked the building’s construction certificate due to a major design flaw, effectively halting construction. Under the Building Standards Act, multi-dwelling buildings must have emergency escape stairs providing a direct exit outdoors. This building’s emergency stairs exited into the garage, which is 2.5 meters above ground level and 19 meters from the outside.
Shioi Kosan, the private asset management company for fast-food bento maker Hotto Motto, has paid 25 billion Yen (approx. 230 million USD) to acquire the 8th floor of the Ginza Six retail and commercial building in Tokyo’s Ginza district. The sale price is more than double the price that the floor sold for 7 months prior.
The following is a selection of apartments that were reported to have sold in central Tokyo during the month of May 2018:
Furniture company Nitori Holdings has acquired a historic residence in Tokyo from Toshiba. The home, which was used by Toshiba as a reception hall for guests, sits on a sprawling 6,400 sqm of grounds in the Nishi-oi address in Shinagawa.
The traditional Japanese house was built in 1941 for Keitaro Miho, the president of Japanese record label Nippon Columbia. It was transferred to Toshiba in 1953. The site was originally part of a larger castle-like estate, with some parts of the original foundation walls said to be remaining within Toshiba’s grounds.
The Japan Real Estate Institute (JREI) has issued an updated medium-term forecast for the price of brand new apartments in Tokyo’s 23 wards over the next seven years. Price predictions have been revised updwards from last year’s forecast. In 2018, average new apartment prices are expected to be 994,000 Yen/sqm, up 0.5% from 2017 and 4.4% higher than their previous forecast.