At the time of writing this, the outbreak of coronavirus casts a shadow over the inbound tourism and economy in Japan. Some may question whether the Japan Real Estate Market can be resilient.

 Our partners who have invested in Japan shared their views saying although the outbreak may disrupt the market for short-term, Japan especially Tokyo has a long term growth due to the unchanged market fundamentals such as its population growth, ample liquidity thanks to the better borrowing terms for Tokyo assets and limited supply in the central locations. The infrastructure the government has invested and upcoming large-scale redevelopment projects will further support this cosmopolitan city as a leading hub in Asia Pacific.

This issue, we offer different ranges of investment proposals in Tokyo – relatively hassle-free income-generating en bloc as your additional source of income while lucrative assets may be more suitable for those seeking for assets with long-term appreciation and growth.

TURNKEY INVESTMENTS

Brand new en bloc office building

Minato-ku, Tokyo
Property ID: 8507

Set amid the hustle and bustle of the central location of Minato-ku, the building will be leased to a single tenant upon completion, making it an attractive, hassle-free investment opportunity for a long-term and stable rental income.

Asset Class: Office
Land Size: 315 sq.m. (3,395 s.f. approx.)
Total Gross Floor Area: 1,290 sq.m. (13,887 s.f. approx.)
Ownership: Freehold
Estimated Completion: Q1 2020
Estimated Return: 4%
Price: Price Upon Request

Fully leased multi-family residential en bloc

Setagaya-ku, Tokyo
Property ID: 8508

Ideally located in Setagaya-ward, one of the most sought-after residential districts among the locals thanks to its close proximity to the Shinjuku and Shibuya areas, this fully leased residential building has recently undergone a full refurbishment. The rental apartments of this building are more reasonably priced compared to those in Central 5 wards. Therefore, the future owner is expected to enjoy capital value appreciation while having a stable rental income.

Asset Class: Residential
Land Size: 265 sq.m. (2,855 s.f. approx.)
Total Gross Floor Area: 448 sq.m. (4,825 s.f. approx.)
Ownership: Freehold
Year Built: 1991 (refurbishment in 2019)
Current Return: 5.23%
Price: JPY 318,800,000 (USD 2.9m approx.) (Excl c-tax)

Newly built mixed-use building

Chuo-ku, Tokyo
Property ID: 8481

Within a three-minute walk from the Tsukishima Station and a short walking distance to Ginza and Nihonbashi, this seven-storey building is situated in Chuo-ward. Recently completed, the portfolio consists of office and residential units, which will meet strong rental demand for accommodation near the city centre. The property is also ideal to be converted into soho office spaces for entrepreneurs and can be your turnkey investment.

Asset Class: Office & Residential
Land Size: 83 sq.m. (890 s.f. approx.)
Total Gross Floor Area: 414 sq.m. (4,455 s.f. approx.)
Ownership: Freehold
Year Built: 2019
Estimated Return: 4.2%
Price: JPY 465,000,000 (USD 4.23m approx.) (Excl c-tax)

VALUE-ADDED INVESTMENTS

Under-valued commercial building

Shibuya-ku, Tokyo
Property ID: 8483

Located in Shibuya ward just off the main road, the property has a high visibility and plenty of room to maximise its rental value. The existing leases are on fixed-term and its rentals are now under market value. With the right property manager and a reasonable refurbishment, the future owner has sufficient room to improve rental values and can potentially achieve a 5% yield.

Asset Class: Office & Retail
Land Size: 140 sq.m. (1,507 s.f. approx.)
Total Gross Floor Area:  682 sq.m. (7,341 s.f. approx.)
Ownership: Freehold
Year Built: 1979
Estimated Return: 5%
Price: JPY 980,000,000 (USD 8.92m approx.) (Excl c-tax)

High Potential Residential En bloc

Shinjuku-ku, Tokyo
Property ID: 8538

Strategically located in Takadanobaba, Shinjuku-ward  with easy access to Shinjuku, Shibuya and Ikebukuro Stations of Yamanote Line, this brand new residential building provides a total of 34 residential units and 1 retail space targeting mainly the local single professionals and overseas students. The return can be further improved under short-term lease scheme by procuring a right operator.

Asset Class: Residential
Land Size: 265 sq.m. (2,852 s.f. approx.)
Total Gross Floor Area: 982 sq.m. (10,570 s.f. approx.)
Ownership: Freehold
Estimated Completion: Q2 2020
Estimated Return: 4.5% (long-term lease scheme); 5.5%+ (short-term lease scheme)
Price: Price Upon Request

LAND INVESTMENT

Vacant land parcel in Chiyoda ward

Chiyoda-ku, Tokyo 
Property ID: 8450

Situated in the commercial hub of Chiyoda ward, the site is currently vacant and is in close proximity to three major metro stations as well as Akihabara JR station, providing unparalleled accessibility to all locations across Tokyo. Multiple uses are permitted on this lot. A development plan has already been approved, ideal for those seeking a hassle-free development opportunity.

Asset Class:  Vacant Land
Zoning: Commercial
Land Size: 104 sq.m. (1,119 s.f. approx.)
Total Gross Floor Area: 762 sq.m. (Tentative) (8,202 s.f. approx.)
Building Coverage: 80%
Plot Ratio: 600%
Price: Price Upon Request

Mayumi Lambon (E-308403)
+852 9109 1526   [email protected]

*USD is for reference only and is subject to change based on currency exchange rate

Originally published in COLLECTION, 1 Apr 2020