Tokyo
Buzzing with life and commercial activity, Tokyo is one of the
world's great cities offering an urban environment that many find
simultaneously exciting and alienating. However, among the
high-rise, neon-clad commercial and residential properties, the
city still has pockets where Japan's traditions are celebrated –
temples, tea houses and gardens still play a large role in Japanese
culture. For many years Tokyo was the most expensive city in which
to own property and it still remains near the top of the rankings,
despite having seen such a long recession. Those without at least
40m yen to spend may find little to attract them in Tokyo.
The city is broken down into nine districts, each encompassing
several distinct areas. The Shinjuku district is popular for its
excellent transport links, large public gardens and areas that
offer a more traditional feel. On the border of the Shinjuku and
Chiyoda districts are Yotsuya, Ichigaya, Iidabashi, all locations
that Western residents aim for, due to the foreign language
schools. Prices here range from around 50m yen to 200m yen or more
depending on building, apartment size and location. Other areas
with overseas schools include residential Meguru and Minato, one of
the most expensive and sought-after central areas to own property.
Prices here start at 75m yen to over 200m for apartments measuring
between 50 and 120 square metres but larger, more contemporary
property can cost as much as 500m yen plus. Minato is home to a
cosmopolitan mix of shops, businesses and leisure facilities, many
of the latter in the notorious Rappongi district where hotels and
bars jostle for space with new apartment developments aimed at a
young population.
Within the Meguru district are the fashionable suburbs of
Daikanyama, Ebisu and Nakameguro, places that appear to be
attracting a hip, young population. The more established suburbs of
Shinagawa and Osaki may offer good prospects for those seeking more
affordable property with good transport connections and amenities
such as parks, schools and low-key shopping areas that appeal to
families. Prices tend to start at around 35m yen for small
apartments, with larger, three-bedroom apartments and small houses
costing from around 80m yen. Similarly, the district of Western
Setagaya is also somewhere families seek out for access to larger,
more family-sized property with easy access to the city. Expect to
pay from around 85m yen for something with two bedrooms.
Osaka
The second largest city in Japan, Osaka is a busy commercial and
industrial hub. It has a population of 2.6m, of which just over
200,000 are overseas nationals. The surrounding Osaka region has
around 8.8m people. The city was recently listed as the eighth most
expensive in which to live and is currently regarded by the Urban
Land Institute in Washington as offering some of the top prospects
for investment and development. All commercial sectors in Osaka,
including retail and industrial property, was earmarked as offering
potential, while residential property was something to buy and hold
for the long-term.
This is partly due to a huge decrease in the price of commercial
land during the crash, which saw a drop of around 79%, with
residential land prices falling by 55%. Prices still have not
climbed back to their former level and overseas investment
institutions have moved in, buying up large areas and sparking a
boom in development. The city was host to the 2007 World Athletics
Championships and Kansai airport is soon to open another runway.
Osaka's main station and surrounding area is currently being
redeveloped into upmarket retail and commercial space, while
established businesses are also revamping themselves and mass
regeneration of public areas is being undertaken. The falling
prices have also attracted people back to the city in search of
more affordable accommodation. A relaxation in building
restrictions on residential property has also increased the amount
of apartments now available. Average prices of apartments in outer
areas start at around 20m yen and go up to over 400m yen with
rental returns of around 80,000 to 100,000 yen per month.
Ski resorts
Japan has 650 ski resorts with a long snow season lasting from
November until early May. Snow is reliable and often deep and
attracts tourists from a large catchment area including China,
Taiwan, South Korea and Australia. The best known area is Hokkaido
where a large number of resorts are undergoing regeneration and two
new ones are also planned. Property in this region is a mix of old
chalets in need of restoration and new-build property, mainly
apartments. In the popular Hakuba resort apartments cost from
around 25m yen, while log cabins and older resales can still be
found from around 20m yen with average rental returns of 3 to 5%
net through the peak December to March period. Property in Niseko
has also become highly sought after with prices rising between 20
and 40% over the past six years. Visitor numbers in 2006 were 1.51m
with 480,000 staying in resorts. As a result, higher-end property
is coming into the region as more development companies take note
of the area's appeal and prices are likely to go up in the short
term. Currently, older property costs from around 30m yen and from
upwards of 40m for a new apartment.
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