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January 01, 2003

1. How is the market looking these days?

An overall increase in demand can be seen, as US companies, invigorated by the recent upturn in the US economy, start to re-establish their presence in Japan.

At the same time however, there is still ample room for negotiating, as prices continue a downward trend in reaction to a sudden increase in the supply of luxury housing in central Tokyo.

The recurring popularity of the traditionally high-priced city-center (Azabu, Hiroo, Akasaka) as the area of choice for both newly arriving expats and veteran Tokyo expats is perhaps the best indication of the falling prices and expanded room for negotiations.

Posted by aoki at 12:02 AM Permalink

2. What percent of the apartments at Roppongi Hills are now occupied?

According to the latest figures, about 90% of all residential apartments at Roppongi Hills are now occupied. Of this 90%, less than a third of the apartments are occupied by expats.

The biggest reason why “Hills” is not as popular with expats as initially expected, has to do with the fact that the average apartment in the complex is 30-40% smaller than apartments of a comparable price level in the same Roppongi-Azabu-Hiroo area.

For singles, young couples, or small families, Roppongi Hill’s lack of space may take a backseat to its unrivaled trendiness and convenience. However, for most expat families with kids, the average Roppongi Hills apartment will probably be a bit too small.

Once prices drop to a competitive level, and people can get more square feet for the buck, Roppongi Hills, with its undeniably great location and chic feel, will no doubt be one of the most popular options out there.

Posted by aoki at 12:02 AM Permalink

3. When's the most popular time for expats to move to Tokyo?

For the most part, expat relocations to and from Japan occur at a consistent rate over much of the year.

However, families with school-age children do tend to move the most during the summer school break (June – August), so that the children can start attending their new schools from the beginning of the school year, in September.

Expat moves to Tokyo generally tend to slow down a bit in October, pick up some in November, then grind to an almost total halt in the latter half of December and first few weeks of January, for the holiday season.

Posted by aoki at 12:02 AM Permalink

4. When can I expect to find the “best deals?”

in Japanese culture, it is of paramount importance that everything be "tidied up" before the arrival of the new year. Everything in this case literally means E-V-E-R-Y-T-H-I-N-G; from the cupboard and windows, to family relationships and business deals.

Therefore, the last week or so of December is probably the most likely time in the course of the year, for a Japanese landlord to offer you an attractive discount.

Posted by theodore at 12:02 AM Permalink

5. How long is a typical housing lease in Japan?

The vast majority of rental housing leases in Japan are set for two years. There is no particular law or regulation requiring a two year term, but custom has made this two year term the norm.

Posted by theodore at 12:01 AM Permalink

6. Can a contract be terminated? If so, how does the whole thing work?

Yes, in most cases it is possible.

For a standard rental contract, you are required to submit a notice of termination in writing at least one or two months in advance (the exact notification period is predetermined in the contract) or to pay the rent for that period (if you could not give notification at the required time).

In the case of fixed-term lease contracts where your company is renting the apartment for you, things can become quite difficult. If there is no special provision or clause in the contract which enables cancellation, sometimes it may simply be impossible.

In the case of fixed-term lease contracts where you yourself are the lessee, you must have a very good and verifiable reason for termination (such as a serious medical emergency).

Posted by miyauchi at 12:01 AM Permalink

7. Is it possible to have a garden in Tokyo?

Houses are quite rare to find in the center of Tokyo, due to high land prices. Not suprisingly, houses with gardens are even harder to find (they make up only around 5% of all expat properties currently out on the market).

However, there is no need to despair: a short hop southwest into such residential suburbs as Denen Chofu and Jiyugaoka drastically changes the situation. Almost 80 percent of expat properties in these areas are houses, and the majority of these come with a garden/yard.

It should be noted here however, that no matter where you live in Tokyo, your garden or yard will not be the garden or yard your uncle Bob has back home. Consider yourself lucky if you can fit a mid-sized garden table with lawn chairs in the garden and still have enough room to sit down.

Posted by theodore at 12:01 AM Permalink

8. How does housing for expats differ from regular Japanese housing?

The major difference between a typical Japanese room and the average expat room is in size. The average Japanese apartment/house is typically 50 to 70 percent smaller than an expat apartment/house.

• Price and Size
The typical Japanese rental property is anywhere between 17 sqm and 140 sqm., whereas expat housing is typically in the 50 to 300 sqm range. Due to the larger floor space, the price range for expats housing lies in a higher range, 350,000 to 2,000,000 yen and higher. The majority of Japanese people prefer to spend less than 400,000 yen for rent, because at anything higher than that, purchasing a home becomes a better deal.

• Facilities
Most expat housing comes equipped with such basic appliances as a stove/oven, refrigerator, dishwasher, washing machine, clothes dryer (and as is often the case, a telephone line), while it is still quite uncommon to find such equipment in regular Japanese housing. In many Japanese apartments, it is not at all rare that you have to purchase air conditioning units and light fixtures in addition to the host of appliances mentioned above.

• Layout
the layout of a Japanese house or apartment is pretty much similar to ithe typical western/expat house. The only difference is that everything is "miniaturized."

Also, tatami-matted rooms are still a fairly common sight in Japanese houses, while they are extremely rare finds in expat-targeting apartments.

• Rental Conditions
The typical Japanese apartment or house up for rent requires 1-2 months’ rent "key" money (gift money to the landlord which is NOT refundable), 2-3 months’ deposit (refundable at the end of the lease) in following with custom. Also a fee of 1 month’s rent at the time of contract renewal is quite common.

Since the vast majority of foreigners are not familiar with these peculiarities, housing geared toward expats is largely free of such fees, with the exception of security deposits (usually 3-6 months rent) which are usually required for high-rent properties.

Posted by miyauchi at 12:01 AM Permalink

9. How long does a typical rental property stay on the market?

This invariably depends on a host of different factors, including location, pricing, and age.

However, it can be said that properties found in popular neighborhoods generally have a good chance of being taken up quickly, even if the rent is a bit high or the view from the window is an intimate study of the neighbor’s concrete wall.

In can also be said that in today’s saturated market, where supply often exceeds demand, a two month vacancy for a property is not at all unusual.

For "insipid" properties, a vacancy period of over 6 months is not at all uncommon.

Posted by miyauchi at 12:01 AM Permalink

10. What are some of the common factors which define "fair rent" in Japan?

Location and size definitely come first. The age of the building closely follows behind. Interior quality, view and sunlight (this explains why apartments on lower floors are priced lower) are also important factors. Large accompanying outdoor spaces—rare in Tokyo—also add to value. Tenant privileges such as pools and gyms may also affect prices favorably.

Posted by miyauchi at 12:01 AM Permalink

 
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