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Tokyo condo sales down, Mitsubishi to raise rents in Marunouchi, and Louis Vuitton pulls the plug on a new Ginza location

December 16, 2008
By Ken Worsley


According to a report released yesterday by the Real Estate Economic Institute, condominium sales in the Tokyo area dropped 14.9% in November, following the 26.0% fall seen in October. At the same time, the number of units sold decreased 16.0% in November, as 11,085 unsold condos remained on the market. The average price of a condo unit in Tokyo increased 7.1% in November, to 50,180,000 yen (about $550,000).

The most popular size sold in November was the 3LDK, with 1,987 units being sold in the area including Tokyo, Kanagawa, Saitama and Chiba. The price range seeing the greatest number of sales was from 25 million to 30 million yen, with 333 units. Nine condos priced above 200 million sold in Tokyo in November, while none sold for over 300 million yen.

In other real estate news, Mitsubishi Estate has announced that it intends to raise rents in the Marunouchi area by about 15%. The firm’s 30 office buildings in the Marunouch area are comprised of about 1.4 million square meters, and Mitsubishi apparently boasts an ultra-low 0.15% vacancy rate in those buildings. That rate compares to the 4.5% vacancy rate seen in the five wards of central Tokyo at the end of November, according to Miki Shoji.

Meanwhile, French fashion giant Louis Vuitton has reportedly decided to give up on plans to open a flagship store in Ginza. In the nine months ended September 30, Louis Vuitton’s Japan sales have fallen by about 7%. A few weeks ago, Louis Vuitton also announced a 7% cut in prices for the Japanese market, in order to reflect the yen’s strength against the euro.

Filed Under Economic Reports, Real Estate, Retail 

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Comments

One Response to “Tokyo condo sales down, Mitsubishi to raise rents in Marunouchi, and Louis Vuitton pulls the plug on a new Ginza location”

  1. Tokyo area new condo sales to increase 11.6% in 2009: Real Estate Economic Institute Japan Economy News & Blog - Business, Economy, Marketing and Economic Reports on December 18th, 2008 10:27 pm

    […] of new condos in the Tokyo area alone fell 26.0% in October and 14.9% in November, according to data released earlier this week by the same institute. The report released today predicts that 2008 sales will show a 31% fall when all is said and done. […]

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