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The story
A report has surfaced about a high-end condo in Tokyo’s Minato Ward where, despite slashing the asking price by ¥20 million, no buyer has come forward. On the thread, discussion ranged widely over the reasons behind the drop — pointing out that “ten years ago this would’ve been a roughly ¥70 million new-build,” the heavy burden of large-scale renovation costs for tower condos, the behavior of Chinese investors, and the growing gap between land prices and building prices. Both a level-headed take — “it just wasn’t priced right to begin with” — and a more alarmed view — “an early sign of the bubble bursting” — stood out.
Change hits “soaring” condo prices — no buyer found even after “¥20 million price cut”
10/12 (Mon) 19:02
TV Asahi (ANN)
Source: news.yahoo.co.jp / Original article here
What people said
They just got greedy trying to sell it high, and now it's not moving.
Once places like this mountain shack start getting slapped with high prices, you've got to start factoring in a bubble collapse — that's what history teaches us.
Tower condos should really just put a My Basket (a small supermarket chain) or convenience store on one of the mid-floors.
And to think people were hyping that place up like crazy to buy lol
Re: #59
More than BOJ Governor Kuroda Haruhiko (lol), it's really Abe Shinzo, who ordered it, that's…
Agreed.
It's like clothes that were supposedly ¥30,000 suddenly selling for ¥5,000 the moment there's a sale — what a scam business lol
Probably some Japanese buyer who thinks "oh, it got cheaper!" and buys it.
And the garbage media will push that along — "Condo prices are falling right now, down a whopping 20% from last year! (though still double what they were the year before that)"
They're already doing that in the comments right now.
Re: #63
But it's actually a good thing that wealthy Chinese buyers are pulling out.
Since they're a different nationality, they won't take responsibility if anything goes wrong — even though it's valuable real estate.
It's a bit old, but it's within about 1km of both Hakata Station and the airport —
↓
That's probably somewhere the locals wouldn't actually live.
Isn't it kind of cheating that it's AI-edited lol
Same here. If you factor in parking fees from when I was renting, even including property tax and my voluntary renovation reserve fund, I was still paying more back when I rented.
My mortgage is easier on me too. I do get a decent housing allowance, but there's a cap on it.
In Japan it's all about the land value — the building itself has basically no value.
The prices are completely different. With ¥100 million you can buy a decent-sized plot of land in Setagaya, and even if you're picky about the house on top, ¥50 million will cover it. But with a tower condo, ¥150 million gets you either a crummy little unit or a used place out somewhere like Musashi-Kosugi.
It satisfies your need for validation by letting you flex on people. That's it.
Personally I don't think there's any real benefit. Take somewhere like Roppongi Hills — there's literally nothing around it.
If it were me, I'd pick a town with a big shopping street, like Kichijoji or Koenji.
The ward government is rich, so subsidies for all kinds of things are absurdly generous. Also, people often mention the embassies — since embassies aren't targeted even in an emergency, buildings nearby or condos that house embassies are said to be safe.
Cases of "sorry, we can't repair the elevator because the parts have already been discontinued" are going to pop up all over the country.
Apparently large-scale renovations are extremely difficult for tower condos — what are they going to do 20 years from now? They might end up as ruins in the middle of the city.
Tower condos really are just winging it, aren't they…
There's no such thing as a "fair price" for real estate you keep paying property tax on forever — you get charged money just for owning it.
Elderly people are better off living somewhere with a hospital and supermarket within walking distance. The city center is actually inconvenient for daily life.
Somewhere like around the Aeon Mall in Musashimurayama, maybe?
Though if your nearest supermarket is a Kinokuniya (upscale grocer) and your nearest hospital is Keio University Hospital, that's inconvenient in its own way.
Probably because materials and everything else have gotten so expensive, but they really skimp on the interiors…
The building itself is basically bulky trash — almost all the real estate value is in the land.
Background and Key Points of This Discussion
Condo prices in central Tokyo have kept climbing, driven by soaring construction material and labor costs, demand from overseas investors, and a prolonged low-interest-rate policy. At the same time, tower condos reach their first major large-scale renovation somewhere between ten and several decades after completion, and with materials costs having spiked, more cases are emerging where renovation costs run far above original estimates — leaving the future cost of upkeep as a cloud over these properties’ asset value. Opinion on the thread split between those who see this price cut as simply “correcting a price that was overinflated to begin with,” and those who see it as “an early sign of a genuine downturn driven by fading overseas demand.” Note that no concrete purchase data was presented regarding Chinese investors’ behavior — the thread’s comments on that point remain speculation.
*This article is excerpted and summarized from the 5ch (News Speed+) thread “[Real Estate] Change Hits “Soaring” Condo Prices — No Buyer Found, Tokyo’s Minato Ward “¥20 Million Price Cut”.”
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