Saturday, September 12th, 2009
Dear international investors,
I surveyed a brand-new apartment building in a quiet residential neighborhood of Omorinishi in Ota-ku yesterday afternoon. Its specs are as follows:
Price: 188,000,000 yen (12 x 7-jo studio (@approx. 90,000 yen) + 3 x parking lot(@approx. 31,500 yen))
Annual revenue (estimation): 14,094,000 yen
Yield (estimation): 7.5%
Location: 2, Omorinishi, Ota-ku, Tokyo
Station: 5-min walk to Heiwajima station (Keihinkiyuko Line)
Land: 223.71 sq. meters
Floor area: 306.82 sq. meters
Structure: Steel / 3 stories
Heiwajima is a Keihinkiyuko Line station and is in-between Shinagawa and Haneda Air Port. Because it is close to both Shinagawa and Haneda and rapid trains stop at the station, commercial districts around the station are bustling with small retails and shoppers although the areas are not so large.
Neighborhoods are almost 100% residential with detached houses and newly-built low-rise apartment buildings. They are very quiet. When I was there at around 4:30 pm, there were many bicycle riders.
In my view, Heiwajima community looked very successful and attractive with much foot, bicycle, and auto traffic. Also, I surveyed three local apartment buildings similar to the brand-new one in size, new-ness, and location in order to understand occupancy ratio of the neighborhood. Unexpectedly, the occupancy of the three apartments is high – 8/8, 13/15, and 46/60. The last one (=46/60) may not look so good at first. But the apartment building will be filled in due course because it is brand-new and people have just begun moving in.