Tokyo

Tokyo’s Retail Real Estate Trends Q1 2024: Opportunities for Foreign Investors

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Summary of CBRE Japan Retail MarketView Q1 2024

Who is CBRE?

CBRE Group, Inc. (Coldwell Banker Richard Ellis) is a global commercial real estate services and investment firm headquartered in Los Angeles, California.

With operations in over 100 countries, CBRE is the world’s largest commercial real estate services and investment firm, offering a broad range of services,

including property sales, leasing, management, valuation, and advisory. Renowned for its extensive market research and industry insights,

CBRE provides valuable data and analysis to help investors, property owners, and tenants make informed decisions in the real estate market.

 

Overview

The CBRE Japan Retail MarketView (commercial properties) for Q1 2024 provides a comprehensive analysis of the retail real estate market across various key high street areas in Japan.

The report highlights trends in vacancy rates, average rents, and sector-specific demand, focusing on both Tokyo and regional cities.

Understanding Tsubo

In the Japanese real estate market, “tsubo” is a common unit of measurement for area. One tsubo is approximately 3.3 square meters or 35.6 square feet.

This unit is often used when discussing property sizes and rental rates in Japan, especially in the context of commercial and retail spaces.

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2024 Land Value Surge in Tokyo and Kanagawa: Key Factors and Future Insights for Foreign Investors

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Land Value Surge in 2024: Insights for Foreign Investors in Tokyo and the Kanto Region

Key Points:

  • Metropolitan Area Focus
  • Economic Trends

On July 1(2024), the National Tax Agency announced the land value(路線価）

as of January 1, showing a national average increase of 2.3%,

marking the third consecutive year of growth.

This rise, the largest in 16 years, is driven by the recovery of inbound tourism,

redevelopment projects, and increased housing demand.

Regional Highlights:

The average land value increased in 29 prefectures, with the highest increases in:

  • Fukuoka: +5.8%
  • Okinawa: +5.6%
  • Tokyo: +5.3%
  • Hokkaido: +5.2%
  • Miyagi: +5.1%
  • Aichi: +3.2%
  • Osaka: +3.1%
  • Saitama: +2.1%

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Comprehensive Cost Analysis: What to Expect When Purchasing Japanese Property

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Introduction

The Japanese real estate market offers unique opportunities and challenges for investors and homebuyers alike.

This article delves into the myriad costs associated with property transactions beyond the listing price,

helping you to budget effectively and navigate the market with confidence.

Understanding Purchase Costs

When buying property in Japan, costs extend far beyond the advertised price.

These vary based on the property’s location, type, and the transaction’s specifics.

Brokerage Fees: (Shiho-shoshi, 司法書士）

In Japan, brokerage fees for real estate transactions typically consist of 3% of the property’s sale price, an additional fixed fee of 60,000 yen,

and a consumption tax, which is currently at 10%.

These fees are payable to real estate agents (buying agents).

 

Similarly, when you decide to sell your property through agents, the same fee structure applies.

You will need to pay 3% of the property’s sale price, plus a fixed fee of 60,000 yen,

along with the 10% consumption tax currently applicable.

These fees are payable to your selling agents.

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Tokyo’s Real Estate Outlook 2024: Insights from NLI Research for International Investors and Residents

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Introduction

 

*Greater Tokyo transaction price and transaction numbers

(From NLI chart)

 

As a leading expert with 15 years of experience as a residential property investor and landlord in Tokyo’s real estate market,

Yamamoto Property Advisory offers unparalleled insights and tailored investment strategies

for foreign investors looking to navigate this dynamic landscape.

Our deep understanding from a landlord’s perspective enriches our advisory services,

ensuring that you receive the most informed and strategic guidance available.

 

The report from NLI Research Institute, a think tank of Nihon Life insurance group, dated March 22, 2024,

provides an analysis of the used condominium market in the Tokyo metropolitan area (greater Tokyo, including

Tokyo, Kanagawa, Saitama and Chiba)with a focus on the effects of financial policy changes

and market dynamics.

 

The used condominium market in the Tokyo metropolitan area has a significant impact on the overall real estate market in Japan

due to its large scale and influence,and because Tokyo is the center of economic activity in Japan. For this reason,

this market is considered an indicator of the entire Japanese real estate market.

 

 

Here’s a concise summary of the main points of the report.

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Beyond the Price Tag: Understanding Agent Responsibilities in Tokyo’s Property Market

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Case Study: The Imperative of Reporting All Purchase Offers

in Real Estate Transactions

 

In the Tokyo real estate market, the ethical and legal responsibilities of real estate agents are often tested in complex transactions.

A compelling example is a case involving the duty to report all purchase offers to a seller, even when these offers fall below the seller’s specified minimum price.

This case study provides vital insights into the professional obligations of real estate agents and the nuances of navigating client relationships.

This case study was created using an example published by the Real Estate Distribution Promotion Center, a public interest incorporated foundation.

 

Scenario: A Dilemma in Reporting Offers

Our real estate firm faced a challenging situation with a property listed for sale.

The seller, preparing for retirement, set a minimum sale price of 35 million yen for their 10-year-old single-family home, even though the asking price was slightly higher at 36 million yen.

The rationale was straightforward: the seller wanted to use the proceeds to partially repay the mortgage on their newly purchased condo.

The complexity arose when an offer came in at 34 million yen, facilitated by another agent.

In line with the seller’s initial instruction, we (agent) chose not to report this lower offer immediately.

This decision, made from a place of respect for the seller’s wishes, soon revealed itself to be a pivotal learning point.

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Tokyo’s Property Market in 2023 (as of October) : An In-Depth Guide for Overseas Investors

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Introduction:

Tokyo, a city that seamlessly blends the ultramodern with the traditional, stands as a beacon of opportunity in the global real estate landscape. For foreign investors looking to dive into this market, understanding its current trends is crucial. In this comprehensive guide, we’ll explore the latest developments in Tokyo’s real estate market, focusing on the used condominium sector, which offers insightful glimpses into the city’s economic heartbeat.

 

*Please click to enlarge the image

 

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Investing in Prosperity: How Japan’s Experience-Based Tourism Boom Impacts Real Estate Opportunities

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Investing in Prosperity: How Japan’s Experience-Based

Tourism Boom Impacts Real Estate Opportunities

 

Hello esteemed readers and potential investors,

 

In the pulsating economic landscape of Japan,

a compelling trend is unfolding that holds significant implications for us all,

particularly those of us vested in international real estate investments.

 

Since last autumn, Japan has experienced a substantial resurgence in inbound tourism.

However, the dynamics of this resurgence are quite different from what we’ve seen in the past.

 

There’s been a considerable decline in ‘explosive buying’,

a phenomenon that once characterized Japan’s tourism industry.

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The Japanese Housing Market: Is it Time to Buy?

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The Japanese Housing Market: Is it Time to Buy?

The prices of newly built standalone homes and condominiums in Japan

have been rising steadily for the past few years,

but there is a growing concern that the market may

be reaching a turning point.

The prices of newly built standalone homes and condominiums

have been rising steadily for the past few years.

 

The price of used condominiums has increased by more than 70% over 10 years.

 

The rise in condominium prices, especially in the metropolitan area, continues.

However, there is a growing concern that the market may be reaching a turning point.

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Tokyo Shines as Second Wealthiest City in the World, Despite Fewer Billionaires

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Understanding the wealth distribution across the globe

 

can offer invaluable insights into potential opportunities

 

and trends in the real estate market.

 

That’s why today, we’re turning our spotlight on a recent report by Henley & Partners, a British consulting firm,

 

which ranks cities based on their millionaire populations.

 

Particularly interesting for us is the position of Tokyo, Japan’s bustling capital, in this global landscape.

 

As we unpack these insights, we’ll consider what this means for real estate investment in Japan,

 

and how these trends might shape our strategies moving forward.

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New Home Prices in Japan Continue to Rise, but Demand is Weakening

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New Home Prices in Japan Continue to Rise,

but Demand is Weakening

 

 

The average asking price for small-scale newly built detached houses in Tokyo 23 wards was 7031 million yen in April,

 

an increase of 0.7% from the previous month.

 

This is the highest price since the statistics started in April 2014.

 

The rise in construction material costs and labour costs has been passed on to home buyers,

 

and prices have continued to rise. However, housing demand is weakening due to rising prices.

 

A survey by Tokyo Kantei found that the number of people who are interested

 

in buying a new home has decreased by 10% from the previous year.

 

This is due to a number of factors, including the rising cost of living,

 

the uncertainty of the economy, and the war in Ukraine.

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