TOKYO KANTEI Monthly report June 2019
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.
What is the purpose of the mission of the Building Standards Law?
The Building Standards Law （建築基準法）was created for the MLIT to provide basic rules for construction during a building and the stipulates minimum engineering safety requirements concerning fire earthquake and other natural disasters.
It also stipulates the types of buildings we can build according to each zoning district(用途地域)
under the city planning law.
A building not contracted to meet this requirement is regarded as an illegal building however a building previously constructed in compliance with a standard existing at the time of the construction but which no longer meet current construction standards is not considered as an illegal building but rather called non-conforming building. (既存不適格）
When you find the cheap property, please make sure if it is a non-conforming building or not. It is not a fatal mistake to buy such a property, but you have to understand what you are running into beforehand.
What is the purpose of the city planning law ?
The city planning law which is set by the Ministry of land infrastructure transport and tourism (MLIT)
exists to regulate urban development.
The law divide Japan into mainly two parts :
1.The city planning area which is regulated by the city planning law
2. The non-city planning area which is not regulated by this law
City planning area is mainly divided into urbanization promotion areas where development is promoted and urbanization restricted areas where the development is restricted.
Urbanization restricted areas consist of agricultural, forestry and fishery projects.
Urbanization restricted areas are not allowed to build residential, office and retail properties.
For example, if you want buy a land in the agricultural areas, you may not able to build your own house.
Don’t forget to check the relevant law and regulation before you purchase such land.
Here is how it works : Japanese real estate essentials.
What kind of laws are protecting rights of your real estate in Japan ?
The civil law describes the general rules for the purchase and sales (and lease) of the property.
The civil law regulates ownership and superficies and also provide the definition of rights such as pledge and mortgage.
As a conventional individual, I think you only need to know how the mortgage works in Japan.
The land lease and building lease law, which is special law of civil law, provides
the general rules of land lease and building lease.
The act on sectional ownership of buildings provides the general rules on sectional ownership, meaning
the law is for the condominiums.
The real estate registration law is for the real estate registration system.
Soak feeling the wind from the ocean?
Some outside baths in Atami is only 5m away from the ocean.
You can soak feeling the wind from the ocean.
Atami is a very popular getaway destination and is renown of the onsen in the area.
It is also one of the primary locations for diving in Izu.
I visited Atami in May 2019 with a client.
You can enjoy the great ocean view from the hot onsen tub in Japanese style hotels.
It has been dead for a long time but regained the tourists for a last
It is now one of the hottest tourists spots near Tokyo.
It is only 60 min away from Tokyo and you can take shinkansen from there.
Beautiful Stories, Hard Realities
Real estate agents/realtors are always holding seminars in Tokyo, Osaka and elsewhere, luring in amateur investors (for Japanese investors so far)
and telling them beautiful stories of how this person or that person got rich in the property market.
I never exaggerate such successes in my seminars, although of course they do exist.
Instead, I always tell the audience true stories from my experience and those of other clients and inexperienced investors, and in particular about the mistakes made.