Komatsugawa 1-Chome

Editor’s Note: Zoe Ward is the publisher of Japan Property Central and has extensive experience in the Tokyo real estate market, working for some of the advertising agents on Real Estate Japan.

There are signs that the fall in secondhand apartment prices in greater Tokyo is beginning to slow down and bottom out. According to Tokyo Kantei, the average price for a 70 sqm (753 sqft) secondhand apartment in Tokyo’s 23 wards in December, 2011, was 40.76 million Yen (529,000 USD). This is a fall of 5.9% from one year prior, but is only down 0.1% from the previous month.

For the greater Tokyo area, the average price increased from the previous month by 0.4%, although it is still 1.6% lower than one year ago. The average price for greater Tokyo across 2011 was 29.79 million Yen (387,000 USD), which is 3.1% lower than 2010.

Prices rising in Chiba and Yokohama

Secondhand apartments in Chiba City increased by 0.5% from the previous month to 17.72 million Yen (230,000 USD), although they are still down 4.4% from 2010. Yokohama City saw an increase in prices of 0.4% from November, but prices are still 1.1% lower than the year before.

Annual price in Tokyo’s 23 wards down 3.1%

The average apartment price in Tokyo’s 23 wards for 2011 was 41.71 million Yen (541,000 USD), which is 3.1% lower than 2010. The delay in sales by developers following the March 11 earthquake led to an increase in supply of new apartments towards the later half of 2011, which put downwards pressure on the prices of apartments on the secondary market.

Sources:
The Nikkei Shimbun, January 27, 2012.
Tokyo Kantei (www.kantei.ne.jp)

Photo credit: Comyu via Wikimedia Commons

Charts: Courtesy of Zoe Ward

Real Estate Japan Note: This article is by Gino Blefari, CEO of Intero Real Estate. Intero is a Real Estate Japan partner and the leading realtor in Silicon Valley.

Photo credit: Bidgee via Wikimedia Commons

Edward was also the speaker for our July 2011 webinar on  How to Invest in Tokyo Foreclosure Properties.

Listen to the Tip of the Week below.

Previous tips from Erik Oskamp :  investment properties in northern Tokyo,  investment properties in Shibuya and Minato wards, and Tokyo Bay real estate, surprisingly high yields in Chuo-ku, Tokyo, real estate taxes in Japan, property valuation in Japan, landlord and tenant issues, and common negotiation mistakes.

Previous tips from Edward Perkich: Overview of Tokyo Foreclosure Properties.

Edward Perkich Who Can Bid on Foreclosures in Japan by RealEstateJapan

Photo credit: Andy king50 via Wikimedia Commons

Editor’s Note: Real Estate Japan K.K. does not endorse the views expressed in any of the articles and the opinions expressed are solely those of the authors and publications included below. The links below are purely for informational purposes only.

This is a weekly news summary taken from Real Estate Japan’s Twitter feed.  If you’d like to see these articles as they go online throughout the week, follow us on Twitter at “Real Estate Nihon”.

Let’s get started:

Koll Says He’s `Excited’ About Japan Real Estate Market (via The Washington Post)

Jesper Koll, head of equity research at JPMorgan Chase & Co. in Tokyo, talks about the outlook for Japan’s economy and stocks. He speaks with Susan Li on Bloomberg Television’s “First Up.”  Click here to watch the video.

China’s housing market is set for a hard landing (via CNN Money)

The Chinese government’s announcement last week that growth for 2011 slowed only slightly to a still impressive 9.2% was greeted enthusiastically by the world’s stock markets.  But the math tells a different story. The housing frenzy has driven prices so high, so fast, that a crash on the scale of the real estate collapse in Japan in the 1990s is a virtual certainty.  Click here to continue reading.

DoubleTree by Hilton Signs Agreement for First Hotel in Japan (via Business Wire)

Hilton Worldwide today signed a management agreement with ASV Investment Co., Ltd to introduce the first Double Tree by Hilton property to Japan. Scheduled to open in mid-2012 as Hilton Worldwide’s tenth property in Japan, the 228-room Double Tree by Hilton, Naha will be located in Naha, the capital city of Okinawa.  Click here to continue reading.

Jones Lang LaSalle picks Goldman’s Kasai to head Japan business (via Reuters)

Jones Lang LaSalle Inc said on Thursday that it has hired Toshinobu Kasai, previously Japan head at Goldman Sachs Real Estate Private Equity Investment Area, to head its business in Japan.  Click here to continue reading.

Japan’s Tepco set for $13 billion bailout: sources (via Reuters)

Japan is set to launch a $13 billion bail-out of the owner of its stricken Fukushima nuclear power plant after the utility dropped resistance to a public fund injection, sources said on Thursday, as the country debates the future of nuclear power.  Click here to continue reading.

Sapporo Buys Back Tokyo Property Stake From Morgan Stanley (via Bloomberg Businessweek)

Japan’s fourth-largest brewer will buy back a 15 percent holding in Yebisu Garden Place, Sapporo said in a statement on its website today. Today’s statement didn’t confirm the value of the transaction estimated in a Dec. 26 press release.  Click here to continue reading.

Editor’s Note: Real Estate Japan K.K. does not endorse the views expressed in any of the articles and the opinions expressed are solely those of the authors and publications included below. The links below are purely for informational purposes only.

This is a weekly news summary taken from Real Estate Japan’s Twitter feed.  If you’d like to see these articles as they go online throughout the week, follow us on Twitter at “Real Estate Nihon”.

Let’s get started:

Is Japan a glimpse of Europe’s future? (via MercatorNet)

There is further recognition by major media outlets that perhaps global overpopulation is not the only demographic story in town.  Reuters has just published an article on how Japan’s demographic winter and economic malaise are linked and how that country’s example may provide a roadmap for the future of other Western economies.   Click here to continue reading.

Volvo Hires JLL for Global Real Estate (via Globe Street)

Volvo Cars Corp., based here, has hired Chicago-based Jones Lang LaSalle to provide corporate real estate services. The two companies working on real estate projects across Belgium, Sweden, North America and Japan.  Click here to continue reading.

Ministry plans to enable real estate securitization (via The Daily Yomiuri)

The land ministry announced plans to establish a new system facilitating the securitization of real estate assets to raise private funds as part of efforts to promote seismic retrofitting and redevelopment for deteriorated buildings.  Click here to continue reading.

Swiss Re: Global Earthquake Risk “Vastly Underinsured’ (via Property Casualty 360)

Countries prone to earthquakes remain underinsured, reveals a new report from Swiss Re.  The insurance industry’s contribution to rebuilding efforts differs dramatically from country to country. For example, about 80% of economic losses in New Zealand are covered by insurance but as little as 12 percent of economic losses from Japan are covered, according to Swiss Re report, “Lessons from Recent Major Earthquakes.”  Click here to continue reading.

NORTH AMERICA SEKISUI HOUSE LLC-Newland Real Estate Group LLC Joint Venture (via Market Watch)

NORTH AMERICA SEKISUI HOUSE, LLC (NASH) and Newland Real Estate Group LLC (Newland), through their affiliates, have formed a new joint venture, NASH-NEWLAND LLC, and acquired the largest operating portfolio of residential master-planned communities in the United States. The joint venture has purchased the interests of the California Public Employees’ Retirement System (CalPERS) and American Newland Communities, LP in 28 master-planned communities, located in 15 markets in 11 states.  Click here to continue reading.

Japanese outflows threaten US Reits (via The Financial Times)

Click here to read the article.  Must use FT login to read the full piece.

REVITALIZING JAPAN — Building a disaster-resistant nation (via The Daily Yomiuri)

This is the second installment in a series of articles examining ways to restore Japan’s vitality.  Click here to continue reading.

Editor’s Note: Zoe Ward is the publisher of Japan Property Central

Notorious politician and former Democratic Party Leader, Ichiro Ozawa, has been involved in a drawn-out trial over possible involvement in false reporting of political funds stemming from the 400 million Yen cash purchase of land in Fukazawa, Setagaya-ku, in 2004.

The indictment alleges that he conspired with three former aides in not listing the 400 million yen loan to Rikuzankai in its political funds report in 2004, and listing 350 million yen for the land purchase in a 2005 funds report, instead of for 2004. Also, the organization did not explain where the funds came from.

A journalist from the Bungeishunju publication estimated that Ozawa has at least 3.1 billion Yen (40 million USD) in assets including real estate, shares and golf memberships.

In early 2010, Ozawa’s vast real estate holdings were made public. They include the following:

- 1619sqm home in Fukazawa, Tokyo (¥980,000,000)
- 567sqm adjoining land in Fukazawa, Tokyo (¥343,290,000)
- 433sqm dormitory for private secretaries in Fukazawa, Tokyo (¥236,220,000)
- 5194 sqm land in Ginoza, Okinawa (¥62,840,000)
- 33.17 sqm apartment in Minamiaoyama (¥33,000,000)
- House in Iwate Prefecture (¥14,630,000)
- 1190sqm land in Higashi-Izucho, Shizuoka (¥5,390,000)
- Vacation home in Nagan (¥14,930,000)
- Vacation Home in Chiba (¥5,000,000)

The Minamiaoyama apartment listed above was originally purchased in 2001 by Ozawa’s “Rikuzankai” – a political fund management body. In 2009 the ownership was transferred to Ozawa’s personal name, which also arose suspicion.

Under an amendment to the Political Funds Control Law, the ownership of real estate by political fund management bodies was prohibited from 2007 onwards. Since the amendment, the Rikuzankai sold, or donated, four central Tokyo apartments to real estate companies.

Sources:
“Ozawa denies role in funds scandal, says aides handled land deal” The Mainichi Shimbun, January 10, 2012.

Zakzak, January 13, 2012.

Wabi-Sabi House in Shinjuku

If you are looking for an alternative to renting your own place in Japan, shared housing may be the answer.

In a shared house, you have your own private room, but share a living room and kitchen/dining room with your housemates. You can enjoy each other’s company without having your privacy infringed on.

Shared housing is also a great option if you are a student or here for a short-term stay because most shared houses do not require a guarantor, key money, or an agency fee, so you can move in quickly without having a lot of money up front.

Here are some shared houses around Tokyo worth checking out:

Wabi-Sabi House in Shinjuku

Wabi-Sabi House Shinjuku Kitchen

This fully furnished house comes complete with brand new furnishings both in the common areas and the private rooms, a spectacular view from the Sky Garden roof top that overlooks the Shinjuku Skyline and is conveniently located within easy walking distance to supermarkets, a deli, a shopping mall, and a gym.

Get the details here.

Sakura House

Sakura House is a well-known operator of guesthouses all over Tokyo. Their properties are known for being located in very convenient locations. They also offer one-person rental accommodations which don’t require key money or an agency fee.

See Sakura House listings here.

Borderless Japan

Borderless Japan promotes their guesthouses as fun living environments, where foreigners and Japanese can come together to learn about their respective cultures.

Many former residents echo the sentiments of this twenty-something guest who stayed at the Sangenjaya house: “I totally enjoyed staying at BORDERLESS HOUSE. I made a lot of new friendships, learned Japanese in various cooking sessions or come together in the evening. I hope you can keep up with the idea of a Japanese-Gaijin shared house, cause it is a great opportunity to meet people and learn langage. Also many thanks to Borderless Staff – You were always great and helpful.”

See Borderless House listings here.

Edward was also the speaker for our July 2011 webinar on  How to Invest in Tokyo Foreclosure Properties.

Listen to theTip of the Week below. Or catch up with previous tips here:  investment properties in northern Tokyo,  investment properties in Shibuya and Minato wards, and Tokyo Bay real estate, surprisingly high yields in Chuo-ku, Tokyo, real estate taxes in Japan, property valuation in Japan, landlord and tenant issues, and common negotiation mistakes.

Edward Perkich Foreclosures in General Final Edit by RealEstateJapan

This is shared housing with a twist; the owner encourages any kind of outfitting or decoration the tenants wish. There is no need for permission to paint the walls or change the layout, do as you wish!

The reason for this is that the operator of the shared house only has the location for a limited time. At the end of that period, then the building will be torn down thus what happens to it between now and then is up to you!

In addition, whether there are lectures on the wood deck balcony or offering cooking classes in the spacious kitchen area, it’s possible not only for the residents to intermingle, but also to hold events where locals in the area can participate as well.

 All the functionality of a shared house are included as well with 8 washing machines available, internet and utilities included in the rent and an Ipad available on site for people to use at their leisure.

Ideally a place like this appeals to someone looking to live somewhere within easy reach of the metropolis area living on a budget.  In addition, you’ll get the most out of this property if you are skilled in the arts, painting, music, baking or other creative pursuits as they are all encouraged here.  Want to paint a giant mural on the wall?  Go right ahead, as long as it isn’t offensive and the other tenants don’t mind. About a degree of room decoration and renovations, please inquire Social Design so that all the tenants can respect each other’s creativity.

With all good things however, there is one catch; there is only room for 60 residents.  Set to open in January of 2012, applications are now being accepted to live in the building and spaces are filling up fast.  Tama Plaza is located 24 minutes from Shibuya on the Denen Chofu line which from Shibuya becomes the Hanzomon line.  Tama Plaza is an important selection for Shared Designers College as the area is rapidly becoming a mecca for creative people, both Japanese and foreign.

Be sure to contact Social Design today to schedule a viewing of this most unique property!  Don’t wait, act now!

Editor’s Note: Real Estate Japan K.K. does not endorse the views expressed in any of the articles and the opinions expressed are solely those of the authors and publications included below. The links below are purely for informational purposes only.

This is a weekly news summary taken from Real Estate Japan’s Twitter feed.  If you’d like to see these articles as they go online throughout the week, follow us on Twitter at “Real Estate Nihon”.

Let’s get started:

2012 Japan Outlook (Via NASDAQ)

Perhaps the first thing to do is contrast the behaviour of Japanese equities in 2011 with the stock markets of other major economies. As we approach year-end (and remember, this outlook is being written in early December 2011), the U.S. S&P 500 is effectively unchanged on the year, while the NASDAQ 100 is up 4%.The UK’s FTSE100 is about 5% lower. Yet the Japanese Nikkei is down around 15% on the year and has more in common with the German DAX (down 14%) and China’s Shanghai Composite, which has fallen by about 17%.  Click here to continue reading.

The rise and fall of property taxes (via The Japan Times)

There are many incentives for buying a home. One of them is to simply get out of paying rent — but that isn’t to say that once you own your residence there aren’t costs that have to be paid on a regular basis.  Click here to continue reading.

Two Huge Differences Between The US And Japan (via The Business Insider)

An article by Eamonn Fingleton in Sunday’s New York Times argues that the great multi-decade Japan bust is overstated, and that it really hasn’t been that bad at all, contrary to ongoing talk of its demise.  This is not really that new of a point, but since people love to say “we are Japan” (with regard to the US economy), it’s a good idea to revisit a few similarities and differences.  Click here to continue reading.

JAPAN SINCE THE QUAKE (via The Daily Yomiuri)

Every Japanese was feeling times were changing before March 11. The nation’s birthrate remained at low levels while the population continued to age quickly. The government’s fiscal condition was getting worse. The global financial crisis had hit the nation hard. Voters were disappointed with the performance of the Democratic Party of Japan, which had taken the reins of government from the Liberal Democratic Party in 2009.  Click here to continue reading.

Tokyo Office Rent Falls to Record Low on Rising Vacancies (via Bloomberg)

Tokyo’s office rent fell 3.7 percent in 2011 from a year earlier to a record low as vacancy rates remained high, according to Miki Shoji Co., an office brokerage company.  Click here to continue reading.

Japan Builders Tout Quake-Resistant Features (via Bloomberg)

Mitsui Fudosan Co. (8801) and Mitsubishi Estate Co. (8802), Japan’s two- biggest developers, are adopting higher quake-absorbing methods to reduce motion during temblors in buildings taller than 20 stories. For builders such Nomura Real Estate Holdings Inc. (3231), highlighting quake-resistant features has meant selling all apartments at the Yokohama project at prices 14 percent higher than average for the area.  Click here to continue reading.

Prologis Leases Strong in Asia (via Zacks)

Prologis Inc. (PLD), a leading industrial real estate investment trust (REIT), has recently signed four new lease agreements spanning 624,250 square feet of its development portfolio in Asia. The strong leasing activities in the region signify the inherent high quality of the distribution facilities of the company that make them attractive investment proposition to enhance the supply chain efficiencies.  Click here to continue reading.

Analysis: Ageing, indebted Japan holds lessons for others (via Reuters)

An asset price bubble pops, hitting bank balance sheets and tax revenues. As growth weakens and the economy flirts with deflation, the real burden of servicing debt increases.  Companies race to pay off debt, further dragging down growth. Government spending takes up the slack. Monetary policy is akin to pushing on a piece of string, so even zero interest rates have scant impact. Population decline compounds the vicious circle.  That is a rough summary of Japan’s plight over the past 20 years. Worryingly, it may also turn out to be the template for other mature economies, especially in Europe.  Click here to continue reading.

Mitsui Fudosan America, Inc. Acquires The Homer Building in Washington, D.C. (via Business Wire)

Mitsui Fudosan America, Inc. (MFA) today announced the purchase of an 80% controlling interest in The Homer Building, a landmark office property of nearly 422,000 square-feet. The Homer Building is located in the heart of Washington, D.C., just three blocks from the White House. Tenants include General Mills, Amgen, and Toyota. With this acquisition MFA now owns approximately 3.8 million square feet of commercial space in the U.S.  Click here to continue reading.

Did Japan really suffer economic ‘lost decades’? (via The BBC)

Japan suffered an economic catastrophe in the 1990s after the asset price bubble that had seen inflated stock and real estate prices during the 80s, popped. Twenty years of flat economic growth followed.  Now, in many parts of the world, including the UK, we could be facing a similar economic outlook, so what can we learn from Japan and was it really two “lost decades” of economic stagnation?  Click here to watch the video.

Japanese Market Trades Notably Lower (via RTT News)

The Japanese stock market is trading notably lower on Monday with investors indulging in fairly heavy selling across the board amid renewed worries about the European economy following a rating downgrade on several eurozone nations by Standard & Poor’s.  Click here to continue reading.

Photo credit: Bidgee via Wikimedia Commons