Latest Market Information

Japanese Condominium Prices For Investment Reach Record High in Q1 2023 (by Rakumachi)

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Rakumachi, a real estate website in Japan, conducted market research for the first quarter of 2023

and found that the prices of all types of investment properties in Japan have increased.

(Not property for living)

 

The average price of one-room apartments increased to 74.95 million yen,

the average price of one-building apartments rose to 277.9 million yen,

and the average price of condominiums rose to 18.81 million yen.

One-room apartments had a yield of 8.98%（gross yield), while one-building apartments had a yield of 7.52%(gross yield),

and condominiums had a yield of 6.87% (gross yield).

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Tokyo Metropolitan Area Housing Prices Rise for 11 Consecutive Quarters by Nomura Real Estate

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Tokyo Metropolitan Area Housing Prices Rise for 11 Consecutive Quarters

Nomura Real Estate Solutions Co., Ltd. announced the results of its

“Housing Price Trends” survey for the Tokyo metropolitan area as of April 1, 2023, on April 6.

 

The fixed-point survey is conducted quarterly, with 169 survey points.

 

The average rate of change for the first quarter of 2023 in the Tokyo metropolitan area

 

housing prices was 0.7% (the same as the previous survey),

 

marking an increase for the 11th consecutive quarter.

 

The percentage of “price increase” points rose to 31.4% (from 30.8%),

 

“stable” points decreased to 65.7% (from 66.9%), and “price decrease” points increased to 3.0% (from 2.5%).

 

By area, all regions experienced an increase for the 11th consecutive quarter.

 

Tokyo’s 23 wards increased by 1.1% (from 1.3%), Tama area of Tokyo increased by 0.9% (from 0.5%),

 

Kanagawa increased by 0.5% (from 0.3%), Saitama increased by 0.6% (from 0.5%), and Chiba increased by 0.5% (from 0.7%).

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How is the market going?: TOKYO KANTEI Monthly report June 2019 (condominium market)

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Fine-looking market?

TOKYO KANTEI Monthly report June 2019

Remarks:

Source: Tokyo Kantei (June 2019) The market in central districts in Tokyo is starting to show the downtrend.

Red : Market movement (sellers listing price)

 

Tokyo Kantei (real estate think tank) just announced the latest report on the price movement of the second-hand condominium market.

 

The price of second-hand apartment buildings in major metropolitan areas continued to fall at ¥ 45.59 million in the 23 wards of Tokyo, down 1.5% from the previous month.

 

It is thought that this is due to the case share reduction in the central Tokyo area and weakness in the surrounding area.

In addition, Saitama City (-1.7%, 27.74 million yen) and Chiba City (-2.8%, 18.32 million yen) are also negative, and the rate of decline in Chiba City, where the number of cases from old buildings increased, was compared It became huge.

On the other hand, Yokohama City has maintained its upward trend, with + 0.9% at 31.12 million yen.

The average prices of major cities in the Kinki region (Osaka area) rose for three months in a row to 32.84 million yen, which is + 1.1% from

the previous month.

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Despite the turbulence in the residential market segment, office buildings are in shortage

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The vacancy rate is historically low in almost two decades since January 2002.

The vacancy rate of office buildings  in May in the five central wards, Tokyo (business districts, Chiyoda, Chuo, Minato, Shinjuku, Shibuya)

was announced recently by office building brokerage firm Miki Shoji in Tokyo.

The vacancy rate dropped by 0.06 points to 1.64%. 

Vacancy rate is the lowest since 2002.

Office buildings in central Tokyo continue to have very few vacancies.

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HARUMI FLAG project in Tokyo : Biggest condominium development in the history : Will it fail or succeed ?

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When the key project takes a tumble ?

The Tokyo Olympics and Paralympics will be held in 2020 summer.

The athlete’s village will be actually renovated and sold as condominiums, rental apartments, and commercial facilities after the Olympics approximately four years after the games.

The development project after the Olympics was named “HARUMI FLAG”.

It is a massive project.

In light of very defensive movement of the new condos in last several months,

many industry figures are bracing for the outcome of the sales.  

Total of 4145 condos units will be for sale and 1487 units of rental property (rental units) will be entering the rental market.

It is the biggest condominium development project by far in the industry history.

By the way, the consortium already announced that two high rise condo buildings will be also built in the site but the details are not

released yet. (the above 4145 units do not include two high rises) 

The development area (Harumi Flag) will be accommodating about 12,000 residents.

The development is a very rare joint project by the consortium of Mitsui Fudosan Residential, Mitsubishi Jisho Residence, Nomura Real Estate, Sumitomo Real Estate,

and other 10 major developers will be engaged. 

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Where is the most expensive location in Tokyo ?：Latest PER report by Tokyo kantei

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Where is the most expensive location in Tokyo ?

Ginza in Chuo-ku.

You are right. In terms of face value, Ginza is the most expensive location in Japan and those expensive

locations are commercial areas.

What about the condos relative to the ratio of rent ?

With the rise in land prices, real estate has become difficult to buy year after year.

Where is the area which is relatively cheaper than other areas in terms of the payback period using

the rent you have to pay ?

Real estate research firm Tokyo Kantei announces “Condominium PER” every year for new condos

as one of the judgment criteria.

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Encountering the marked down properties ? : Market update January-March 2019 Investment properties

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Let’s face it.

Kenbiya  (One of Japan’s major internet web sites on the real estate property for the investment) recently announced the latest market update

for the first quarter of 2019. I am quickly sharing the summary of the report today.

Price:  The average asking price 

Yield :Gross yield. It is calculated as a percentage based on the property’s market value divided by the income generated by the property

          (before finance cost/management cost/tax)

Overall Japan

Condominiums (one unit)

January-March 2019

Yield 7.36% (-0.45 points compared to the previous quarter)

Ave Price 15.51 million yen (+ 10.79 point )

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Long-lasting growth ? Market update : Japan land price 2019 -first time rise in 27 years-

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(Niseko ski resort, Hokkaido)

Long-lasting growth ?

The Japanese government recently issued a report on the average land price in Japan.

It is announced every year and surveys 26,000 spots all over Japan.

Today I am sharing some key findings and forecast for the future.

Summary

Overall, the national average price for commercial land increased 2.8 percent and that of residential land edged up 0.6 percent.

The average price of all types of land in Japan’s regional areas (namely local areas) rose for the first time since 1992 last year

due to the influx of foreign tourists.

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Japan market update. How are big players betting ? : Is it in the state of bubble ?

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JLL-Japan (JLL is an American professional services and investment management company specializing in real estate) recently held the conference in Tokyo with 400 participants from 250 companies.

JLL reported very bullish news about Tokyo market as follows: 

“Tokyo overtook London as the world’s busiest real estate market in the first quarter of 2018, with mega-deals and an unusually positive economic outlook driving demand.

Investment volumes in the Japanese capital more than doubled to US$9.1 billion in the three months to March (2017: US$4.3 billion), just beating New York (US$9 billion) and way ahead of third-placed London (US$5.9 billion).

Global deal volumes rose 15 percent to US$165 billion, making the start of 2018 the biggest quarter for commercial real estate deals since 2007. Asia Pacific transactions rose 34 percent to US$40 billion.”

Tokyo will continue to see the many office construction sites till 2020 and it would make the rental growth slow but the rents have been steady and are still rising.

According to a report by the prominent Japanese real estate consulting firm ‘Sanki shoji’, the vacancy rate of offices in upscale locations in Tokyo as of September 2018 stands at only 2.33 percent (down 0.12 percent from the previous month) and the rents have been steadily rising in last twelve months.
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Japan’s real estate price update: Price up for 3 consecutive years. Very strong growth in Tokyo buoyed by the booming inbound tourism

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(Ginza, Tokyo)

The results are in. You will be surprised to learn that Japan’s real estate price -at least some spots are- is breaking the record set during the bubble period.

On July 2, 2018, the National Taxation Bureau announced the average value of a square meter of land for tax assessment as of January 1 2018.The nationwide average price went up by 0.7% from the previous year and it increased for three consecutive years. By prefecture, growth is high in the three major metropolitan areas such as Tokyo (up 4.0%), Osaka (up 1.4%), Kyoto (up 2.2%), Aichi (up 1.5%)The rate of growth is higher in all three major metropolitan areas than the previous year.The rate of growth in core local prefectures is rather high such as Hokkaido (up 1.1%), Miyagi (up 37%), Hiroshima (up 1.5%), Fukuoka (up 2.6%).Average price in Okinawa was up 5.0% and it is the highest rate of increase in Japan.
Here are some key facts.

Tokyo
In Tokyo metropolitan, the average price went up 4.0%, the five consecutive years.
Ginza Chuo-dori has broken its record high for the second year in a row.The top appreciation in Tokyo was 15.8% at Aoyama Street, Minato-ku, Aoyama 3, which is also an upscale residential area. A number of luxury brand flagship stores are located in the area.In terms of growth rate, Aoyama regained the top place for the first time since 2007.The second spot is Adachi-ku Senju 3’s Kita-Senju Station West Exit Square  and it went up by 14.5%.In addition to the revitalization of the area due to the effect of a few universities campus being relocated, the convenience to the center of Tokyo boosted it.
These are the some major and the most expensive spots in Tokyo 23 wards.
(price per square meter ‘000 yen and the growth rate)Read more