Overview of main investment target area: Central five wards in Tokyo
Land price
After 2005, official land prices continued on an upward trend on a nationwide basis. However in 2009, prices of commercial land and residential land both made a turnaround to a downward trend. In particular, the rates of decrease of the central five wards in Tokyo and Minato-ku have been high when compared to the national average.
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| Source: |
Based on “Published Land Prices” from 2003 to 2009 published by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism. |
| (Note 1) |
“Tokyo Area” indicates municipality (wards, cities, towns or villages) areas, including built-up areas and suburban development/re-development areas stipulated by the Capital Region Improvement Act. The same shall apply hereinafter. |
| (Note 2) |
The volatility of official land prices of central five wards in Tokyo is the amount derived by calculating the weighted average using the number of standard land parcels (standard sites) for each ward. |
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| Source: |
Based on “Published Land Prices” from 2003 to 2009 published by the Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism. |
| (Note) |
The volatility of official land prices of central five wards in Tokyo is the amount derived by calculating the weighted average using the number of standard land parcels (standard sites) for each ward. |
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Office demand
The vacancy rate (Note 1) in the large cities, such as Tokyo, Osaka and Nagoya, was on a downward trend after reaching a peak in 2003. However, since March of 2008, it has been on a moderate upward trend. The vacancy rate (Note 1) of the central five wards in Tokyo is hovering in a relatively low level when compared to other cities.
Rents in the central five wards in Tokyo had shown an underlying upward trend since 2004, but since March of 2008, it entered a downward trend and the same trend continues for Minato-ku.
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| Source: |
“Office Market Report” by CB Richard Ellis |
| (Note 1) |
“Vacancy Rate” is the average value of the amount derived by dividing vacant space with total rentable space in rental buildings within the office zones of each region, each month. Total rentable space is the sum of the rentable floor area of rental office buildings completed before the last day of each month within said zones. |
| (Note 2) |
“Class A Buildings” refers to large-scale buildings located in areas which are highly mature as business areas, centering on the central five wards in Tokyo, or high potential areas (those that meet the standards, i.e. the total floor area is approximately over 10,000 tsubo, the building age is less than 21 years and the ceiling is more than 2.6 meters high, etc.) |
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| Source: |
“Office Market Building Research Report” by Miki Shoji |
| (Note 1) |
“Average Rents” is the amount derived from dividing the sum of advertised rent of the standards board of each office building with the number of office buildings. |
| (Note 2) |
Investigation targets are as follows:
- Central Five Wards in Tokyo: Premiere rental office buildings of more than 100 tsubo of standard floor area.
- Osaka City (Main 6 Districts:Umeda District, Minamimorimachi District, Yodoyabashi/Honmachi District, Senba District, Shinsaibashi/Namba District and Shin-Osaka District): Premiere rental office buildings of more than 1,000 tsubo of gross floor area.
- Nagoya City (Main 4 Districts: Meieki District, Fushimi District, Sakae District and Marunouchi District): Premiere rental office buildings of more than 500 tsubo of gross floor area.
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