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Price Of Land In Tokyo Up

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Nikkei news

Unfortunately, you need a subscription to view the full English article. Fortunately the Japanese edition is free, so here is a quick summary:

The price of residential land in Tokyo is up 0.5% for the year to 1st July, the first year on year rise in 15 years. Business use land is also up 0.6% in central Tokyo. However, for the rest of the country the price of land is down 4.2% for the year.

In comparison to the height of the peak in 1991, the overall decrease for the whole country is 33%

I have heard that peak to trough, some areas of Tokyo have dropped 90%.

One thing to remember, % drops appear less than % rises, e.g. 100k rising to 150k is a 50% rise, 150k dropping to 100k is a 33% drop.

Levels are currently about the same as the late 70's

Good time to buy in Tokyo?

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Nikkei news

Unfortunately, you need a subscription to view the full English article. Fortunately the Japanese edition is free, so here is a quick summary:

I have heard that peak to trough, some areas of Tokyo have dropped 90%.

One thing to remember, % drops appear less than % rises, e.g. 100k rising to 150k is a 50% rise, 150k dropping to 100k is a 33% drop.

Levels are currently about the same as the late 70's

Good time to buy in Tokyo?

I would want more than a potential clerical error as a sign to buy in tokyo :D

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I guess dogbox has been buying land abroad again :).

Thats a point, wasnt he banging on about a do'er up'er not so long back :lol:

Come on dogbox hows your japanese? :)

Before YOU say it i will say it myself

Proxy quote: "Better than your english is chuz"

P.S because i feel the need for a postscript, can all credit please go to me for coining a new phrase i.e "proxy quote" i also take the copywrite on "proxy quoting" and "proxy quoted".

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I saw a news item on NHK (the Japanese version of the BBC).

Now, I think that these are the posted land prices that the authorities use to calculate land taxes. The surges quoted may be based on actual market sales.

If you though VIs were bad in the U.K., you ain't seen nothing like the vested interests in Japan.

Prices are still falling overall. A few prime real estate examples, such as in the front of Nagoya Station and in the better parts of Tokyo, have showed a drop. But overall, the fall continues.

In the regional cities, the fall is even worse. It's too early to say if this is part of an upward trend.

Okay, so a few real estate jewels will go up, but the vast 99% of secondary and tertiary real estate will continue to slide. To make matters worse, Japan is facing a severe decline in population in the near future. The average birth rate is about 1.22 children per woman.

I shall have a dig around on the Japanese newspaper sites like the Asahi (a good, left-wing rag) and see what pops up.

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To make matters worse, Japan is facing a severe decline in population in the near future. The average birth rate is about 1.22 children per woman. 

They need to adopt our immigration policies then they won't have a population problem.

Edited by large

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They need to adopt our immigration policies. Let hundreds of thousands of unqualified, unskilled people into their country, pay them shed loads for sitting round all day so they can do nothing but breed like rabbits, then they won't have a population problem. However, they might then find that these same people turn on the country that supported them, educated them, and fed them, and blow their fellow country men up as they travel to work on a bus.

Nominted for twatist comment of the year award.

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How many years of 0% real interest rates did it take to breath life into the Tokyo market.?

Good point, in Japan they have also had income tax breaks of upto £15k (3million yen) for anyone who purchases a house, although they do charge sales tax on the overall price of the house at 5%, so it is inconsitent

I would also emphasize Odakyu-sen's point, the japanese property market is still going down, on the whole, at a rate of 4.2% a year, it is only central Tokyo that has shown a very small rise.

Still, I am considering a purchase of an empty building plot (probably around £75k), then I will turn it into a mini-parking lot and rent out spaces to local residents on a monthy basis (monthly income of around £600). This is a return of 9.6% + any increase in the price of the land, it may even be tax free.

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If Japan's birth and population stats still indicate that families are priced out then land prices (with the added backdrop of a recessionary world climate) are not likely to rebound, especially as interest rates are already as low as is possible.

Japan made a rod for its back a couple of decades ago. Big enough to scupper decades of normal growth.

Fair to say that the anglo saxon property driven economies learnt absoutely nothing from Japan's experience.

Edited by OnlyMe

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I guess dogbox has been buying land abroad again :).

Bit far away for me right now, but looks a great investment. What has fallen 90% can rise 90%. Buying at these levels is a one way bet and unlike shares you own a real live asset that cant dissapear into the ether, unlike a company.

Chuz, one of the keys to investing is to arrive early. The point is to buy before 'signposts' and newspaper articles begin to emmerge.

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Bit far away for me right now, but looks a great investment. What has fallen 90% can rise 90%. Buying at these levels is a one way bet and unlike shares you own a real live asset that cant dissapear into the ether, unlike a company.

I know what you mean by this, but just for clarity I refer you back to my comment in the original post:

100k loses 90% it becomes 10k

10k goes back upto 100k it has gained 900%

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P.S because i feel the need for a postscript, can all credit please go to me for coining a new phrase i.e "proxy quote" i also take the copywrite on "proxy quoting" and "proxy quoted".

Only if you take the copyright on "poxy quoting" etc. too.

:)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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