Real Estate slump?

Price reduced to clear. US 70,000 off
Price reduced to clear. US 70,000 off
Price reduced to clear US 70000 off

After the bursting of the “Bubble Years” in Japan it took property prices a long time to stabilize. Some parts of Tokyo were more resilient than others, like Omotesando 表参道 and Aoyama 青山.

I was passing by this place in Daikanyama 代官山 advertised as an open inspection on the weekend and was surprised to see the sign saying “reduced by US 70,000” (700万円値下げました). The sign also shows that the monthly repayments on this place are about US 1,270. YEN 127,473, with no deposit required.

The apartment shown here is 55.86 metres square with 2 rooms and a kitchen. The building is really old (about 30 years) and whilst the apartment has been reformed very nicely, the price of US400,000 (JPY 4,180万円) still seems very high.

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  • I would say so. That's more than my monthly house payment, and i have a 30yr interest only pymt. can you haggle on the price there in Japan?. And is that apartment near a downtown area?
    Well have a great week.
    Ja mata ne.

    • It used to be harder to negotiate prices when they were going up, but now it is a buyers market. You can even "low ball" them without appearing rude 😉

  • 55 sq meters 2LDK in Daikanyama, 30 years old – probably rent out for JPY 200,000 a month if you're lucky. JPY 127,000 in repayments, and I bet that doesn't include management fees (and certainly not tax..), which together probably come to another JPY 50,000 a month. On average you should reckon on 1 vacant month per year, and half a month's rent to fix the place up after each tenant/general repairs… Hello negative yield!

    Yup, price still seems very high for this.

    • That sounds about right. Negative yield and then in another 10 years time they will probably want to knock the building down. You dont get rent money when the building has been turned back to dirt.

  • I was engaged in house renovation planning business for a while, up until recently. I knew I was losing orders from my customers (real estate companies) in 2008. Orders dropped dramatically as they were having hard time buying new rooms to make renovation. 🙁

    BTW, I found your comment format looking nice and so I joined IntenseDebate, but I wonder why my screen is different from yours. You have an arrow when you reply to the comment. But not mine (my blog). Is this because of setting?

    • Thx for your comment. I think many businesses are having a hard time with reduced orders. I am sorry to hear you also had problems.

      I think the setting to get the arrow is in the intensedebate page. look under "settings", they have a box you need to click which says "Enable threads". I think that it is. If not i will check again. You have some good comments on your site. It looks great. 🙂

      • You're right, I made it from the settings, as you say. Thanks a lot!
        One more question. m(_ _)m *sorry for asking you, I'm so tech-challenging person*
        How do you get smily icons in the comments? I used to have smily but I lost it since I joined IntenseDebate. So all the smily icons are gone and just texts are left…

        BTW, I think YOU are doing pretty well nevertheless it's not long since you started this blog.
        I'm also impressed how often you update your posts. Keep up the good work! 🙂

      • If you go to "plugins" on the far right hand side tab of intensedebate, you can add smilies and video comments and other things. I like the smilies a lot 🙂