Back to the land (3)

Posted on by catforehead

CIMG2494Having lost interest in the land in Makinosato, we felt as if we’d retreated to square one. There was still that lot near Shimosa-Manzaki station, but besides being really cheap it didn’t offer anything we could get excited about. Our disinterest was rooted in the same feeling that made it easy to drop the Makinosato plan: We didn’t really want to live in a subdivision, though we also understood that if we wanted to remain in this particular stretch of Chiba Prefecture and weren’t going to pay more than ¥5 million, the only lots we could afford were in subdivisions. This feeling turned to something like despair when several large tracts of land close to our train station were suddenly opened for development. As mentioned elsewhere in this blog, we live in what is called Chiba New Town, which stretches across parts of three cities in northern Chiba Prefecture. As a housing and commercial project developed by the government housing authority in the 1960s and 70s, management eventually fell to the authority’s semi-private successor, UR, which was stuck with a lot of land that was never developed because Chiba New Town didn’t attract residents and businesses in the numbers the government originally envisioned. But the government has also given UR a deadline to get out of the land development business and that deadline is next March. So suddenly, all these overgrown fields bordering the Hokuso Line are being bulldozed and subdivided, and several weeks ago housing companies and real estate agents started advertising the plots, which start at about ¥11 million for 200 square meters. So even though there will be hundreds of plots made available soon in subdivisions we would probably prefer not living in, we at least have to double our land purchase budget in order to buy one.

So after a short respite we resumed our seemingly endless Internet search, checking portal sites for anything–land, condos, used houses–that might offer us something appealing. In terms of land, we increased the budget to see what was available. Portal sites have series of buttons you check to narrow the search, and land prices are normally tiered in multiples of ¥5 million. In the past we’d input the very smallest amount, but now we broadened the search to ¥10 million in the areas we were interested in. There was a lot more available, obviously, and since we’ve been at this thing a while we’ve become better at rejecting properties without looking too closely at them. Read More

New values

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CIMG2031Earlier this week the national tax agency announced that, on average, land values throughout Japan went down 1.8 percent, raising hopes in financial circles since it’s the lowest drop in a long time. Any sign that the economy is improving is given a lot of play in the media, though a closer reading of the statistics indicates it may not be what it seems. As almost all the stories point out, the main brake on the drop in property values was the sudden surge in sales of luxury condos in the major cities. If you discount those sales, much of which is being spurred by overseas investors, the drop in value is pretty much the same as it’s been for the past decade or so. In Asahi Shimbun’s coverage, a reporter talked to a 37-year-old salaried worker who was looking to buy a used condominium in Ichikawa, Chiba Prefecture. He found one that was very cheap and only 10 minutes from Motoyawara Station, but was disappointed by the “undeveloped” quality of the neighborhood. A local realtor told the reporter that his business has not changed at all. Property values in the area are 4.7 percent less than they were a year ago, when the values were 4.4 percent less than they were in 2011. “The only place that’s any good is the center of Tokyo,” he said.

Another realtor in Kofu, Yamanashi Prefecture, told the paper that the value of properties near the main train station declined 3.8 percent over the previous year, and he didn’t sound hopeful, citing the fact that there has been no increase in the last year of “inquiries for home remodelings” that actually lead to contracts for work. “That’s because nobody’s income has increased.” The media was expecting a rush on home sales prior to the increase in the consumption tax next April, and until May, housing starts rose year-on-year for nine months straight. That statistic may go south, however, since there is a suspicion that interest rates will also go up in line with the government’s monetary easing policy, thus discouraging some potential new homeowners. Almost everyone Asahi talked to, from realtors to securities analysts, believe that the situation won’t change significantly unless average people start making more money.

Back to the land (2)

Posted on by catforehead

CIMG1994For a short time we were very interested in a small piece of land in Abiko along the Narita line near Kohoku Station. It was in a tightly packed subdivision called Nakabyo surrounded by older neighborhoods whose winding streets and oddly shaped plots of land indicated it had once been an agricultural community. Nakabyo itself was not as distinctive. It was a typical subdivision of the late 80s, with large houses in varying degrees of disrepair situated on lots that were a little too small for them. The community was laid out on a gentle, long slope that ascended south to north, so that houses positioned on the north sides of the parallel streets had a slight advantage over the ones positioned on the south sides, whose own southern exposures were quite close to their southern neighbors. The land that interested us was at the bottom of the slope and positioned on the south side of a street but its own southern exposure faced a large park. Moreover it was on the corner of an intersection, meaning streets bordered the land to the east and the north, not buildings. Only to the west was there another house.

And it was cheap–¥4.3 million. In fact, the realtor implied that we could probably get it down to an even ¥4 million if we paid cash. Apparently, the owner was desperate to unload it, and we wondered why it was so difficult to do so. Abiko is quite popular owing to the many train lines that run through it and the fact that Ueno is a little more than 30 minutes away by express. This was not in central Abiko, but it was close enough. Moreover, the clear prospect on three sides, including a park to the south, made it one of the few truly attractive lots we’d found in a conventional subdivision. The only reason we could see for its relative unpopularity was its size, slightly less than 100 square meters. Since the occupancy rate was 50 percent and the capacity rate 100, it still meant you could build a two-story house of up to 100 square meters, but because the shape of the land was slightly trapezoidal, the orientation of the house was limited. Read More

Unsellable

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usuidai

A room with a sorta view

Several months ago we looked at house in Sakura, Chiba Prefecture that was built in the early 90s. It was on the side of a fairly steep hill and commanded a view of Inba Marsh to the northeast; or, at least, that was what the info at various real estate portal sites implied. The place had already been on the market for almost six months, and when we noticed that the price had been cut for the second time we thought we might take a look at it. Originally, it was about ¥18 million and now it was ¥13 million.

The owners were still living there, but the agent said it would be no problem to look at it. Inspecting properties where people still live isn’t much fun and usually not very helpful. Though you can get some idea of the functionality of a place by seeing how people live in it, those people’s mode of living is always very different from our own, so there’s nothing to gain from it. We have to imagine ourselves in this place without all their stuff.

This particular house was even worse than we could imagine, since the photos on the web didn’t include interior shots. The residents didn’t even bother to clean up and we walked through bedrooms (they have two kids) with laundry thrown on the floor and a kitchen so cramped and cluttered there didn’t seem to be anywhere to stand. Even the “view” that the portal site had publicized turned out to be nothing. The only vista was from one of the bedrooms. It was impossible to tell how much work the place would need since it was difficult to see the floors and walls.

We promptly crossed it off our list and would have forgotten about it completely but it remained on the market and thus on all the portal sites we checked regularly. Last week we noticed that the owner had decreased the price again, this time to ¥8.9 million, which is quite a drop. That means the asking price is now about half what it was when it first went on sale. The agent let on that the family couldn’t move until they sold this house, but if that’s the case they are going to have to do something more than just keep cutting the price. Maybe the house is unsellable anyway, but in this market, which is filling up with older homes all the time, a low price isn’t enough. This particular house isn’t that close to the station. Would a better “presentation” help? It couldn’t hurt, but in any case it’s hard to imagine that there is a buyer out there who would want to buy such a place.

Move on up

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CIMG2287Of the three prefectures adjoining Tokyo, Chiba is by far the cheapest in terms of real estate. It tends to rate on the dowdy end of the desirability index. Kanagawa remains the hippest because of places like Kamakura, Shonan, Yokohama; while Saitama, though often derided in popular culture as a suburban backwater (“Dasaitama”), was developed rather quickly owing to its size and convenient proximity to the capital. In fact, property values in northern Chiba along the Noda and Joban lines are comparable to Saitama’s. It’s when you get farther out on the Keisei and Sotobo/Uchibo lines that the suburbs become sparser and less expensive. Chiba is viewed as the sticks, which is just as well for us because it offers more affordable places within striking distance of where we live now.

Interestingly, one of the most expensive housing developments in Japan is in a relatively remote corner of Chiba. The Azumigaoka New Town is part of Chiba City’s Midori Ward, but the nearest train station is Toke on JR’s Sotobo Line, which means it’s practically in Ichihara. The exclusivity of portions of the new town development, coupled with the unusually large plots of land contained therein, have earned at least two subdivisions in the area–Prestige and One Hundred Hills–the nickname Chibaley Hills, a takeoff on Beverley Hills. We’ve never seen this neighborhood with our own eyes since, as with the real Beverley Hills, the residents discourage tourists and gawkers by restricting access. When it first opened the development got a lot of media attention, which in turn attracted motorcycle gangs, so now they have a patrol that politely keeps out pedestrians who have no business there. Nevertheless, you can find properties in the area on sale at almost any real estate portal site, and they remain pretty expensive, though certainly not as high as they were when they were first built during the bubble era. What’s considered a super luxury in Japan would be more or less upper middle class in the U.S., essentially backyards big enough to provide privacy, two or more bathrooms, and lots of windows and open floor plans. We even saw one property at a realtor’s site with a swimming pool. Read More

Stand-up routine

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showerLast week we were looking at a new house that had recently been completed. The owner allowed the builder to show the property to the public as a model prior to his moving in. The builder represents a new trend in housing that is quickly catching on, and for good reason. They offer a number of standard designs that can be constructed cheaply using kits and materials bought in bulk, and the purchaser can customize the designs in various ways with options and slight floor plan changes. The basic structures range from a mere ¥9 million to about ¥13 million, not including land, of course. The builder also deals in land sales, but only insofar as a means of selling new homes. They look for stray plots for people like us who are looking to build their own home but haven’t found land yet. It’s the reverse of the usual process. Since the house is the main sales point, the company doesn’t charge a fee when brokering a land deal.

For us, however, the visit was purely for research purposes. The house was well-made but the basic design and overall aesthetic was dully conventional: boxy rooms, white walls, nondescript fixtures. Of course, the buyer could pay more and make the improvements he liked, which is the whole point, but given what there was to begin with we weren’t inspired. Moreover, the company seemed to limit its land selection to cramped housing developments, specifically orphan lots that hadn’t been sold after a particular development had been opened for sale.

In fact, the visit wouldn’t be worth mentioning if not for one feature that stood out so prominently it seemed to define the house. The owner, whom the agent told us was a “foreigner,” had exercised his design option by installing a separate shower stall on the second floor, in addition to the usual unit bath on the first floor. Stand-alone showers aren’t very common in Japan, certainly not as common as they are in the U.S. or Europe, but you do occasionally see them. What made this one odd was that it was built off the second floor hallway. It was designed almost like a closet: there was a folding door, beyond which was a capsule-style unit shower. There was no space for changing clothes, you just stepped directly from the hallway into the shower. There was also a toilet on the second floor, but as is the Japanese custom it had its own separate room, and was down the hall from the shower. The second floor also had two bedrooms. Japanese houses usually don’t provide a distinctive “master bedroom” in the sense of a room with its own attached bathroom, but the larger bedroom in this house had a huge walk-in closet that was positioned adjacent to the shower stall but didn’t connect to it.

We asked the agent why the owner didn’t put the shower stall in the bedroom or made an entrance to the shower from the walk-in closet. She said that they had another customer who did just that, but such a design change was very expensive and didn’t fit within the overall budget of the person who ordered this house; which is a reasonable explanation but all we could imagine is family members and weekend guests dripping water everywhere as they walked naked around the house (there was a third bedroom on the first floor) after taking a shower. The agent, noting our bemusement, remarked, “Yes, it is strange, isn’t it?”

Highrises revisited

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DSCF1857Though we miss living in Tokyo, especially shitamachi, we don’t really miss the highrise kodan where we spent eleven years. Until the earthquake our main complaint was the mostly insular nature of highrise life, the feeling that it was always difficult to get in and out, but during those weeks after the temblor it became a nerve-wracking experience, even as we became convinced that the structure was safe. We wrote a number of posts here about that experience and even one related column for the Japan Times (though it seems to have been taken off the JT site). For a while the media and the market seemed to concur with us that highrises may not be a wise option for a city that could be hit with its own big earthquake at any time, but eventually fears subsided and highrise condos started selling again; quite well, in fact, so we assumed our fears were just our own and didn’t extend to the general population. Even Tsutomu Yamashita, a housing journalist who is unusually frank about these sorts of matters, has come around and said that investing in a highrise Tokyo condo is a good idea since they’ve become even safer since the quake.

A recent article in Aera, however, has confirmed our initial sentiments. Opening with a frightening “what-if” scenario describing a 7.3 magnitude quake happening under the capital, the feature makes the case that even though these highrises will not collapse, life will essentially be impossible in them indefinitely. The most immediate concern, and the one that made the biggest impression on us in the aftermath of the 311 quake, whose epicenter was hundreds of kilometers away, was the loss of elevators, which shut down automatically when a building shakes. According to law, they can only be turned on by a certified technician, which means even when the shaking stops residents will have to wait for that technician to show up, and he may be inspecting other highrises. This problem multiplies with the intensity of the jolt. And if the quake is strong enough to knock out electricity, then the elevator problem is exacerbated. Under such circumstances, the residents on higher floors become like “people stranded on the top of a mountain in bad weather.” The idea of walking down and then up emergency stairways to run errands or whatever is just impractical, and virtually impossible for the elderly, the handicapped, and pregnant women. Most highrises have emergency generators, but these are for contingencies and thus only have enough power for maybe two hours. So if the elevators are out due to loss of power, that means the stairways are also dark. And even if the building structure is sound, some elements, such as doorframes, could be compromised, making it difficult to get out of an apartment. All highrises have emrgency ladders connecting verandas for use during fires, but it will be very difficult to use them to get all the way to the ground. The Tokyo metropolitan government has said that in the event of a major quake their estimate is that it will take at least a week to recover electrical power. Also, highrise residents will likely be lower down on the list of people receiving attention during rescue operations because of the difficulty for crews to access higher floors. Emergency services will first attend to victims they can reach more easily. Read More

Cheaper than dirt

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shiroi4A few weeks ago we learned that a house we had been interested in was sold. We had first seen the house last fall and wrote about it here, and then did some research because the realtor who showed it to us couldn’t answer our questions about the structure and the land. Obviously, other people looking to buy were less apprehensive about the property. Another reason we hesitated for so long was the price. When we first inspected the house we thought ¥15 million was reasonable considering the size, the layout, and the unobstructed view to the south, but then we noticed that in the same general vicinity a developer was selling brand new houses of a comparable size for only ¥16 million, and some were even closer to the train station. Looking at these houses on the web we realized that the reason they were so cheap was because the developer had bought a tract of land in an undeveloped corner of town and just filled it with as many structures as it could. These were not houses ordered by people who first chose a plot and then a model from a list of designs to build on the plot. The developer divided up the tract and went ahead and constructed identical houses on all of the plots, with perhaps minor differences determined by light exposure or shape of the land. By doing it in a mass way, the developer could save money. Though we could tell by just looking at the photos on the web they were not for us, we also thought it would appeal to a lot of potential buyers simply because the houses were brand new, and thus it would be much more difficult for the realtor selling the house we’d been interested in to unload it, but we were wrong.

The existence of such new homes made ¥15 million seem like a lot for the house we had been interested in, so we did a search and found several developments in northern Chiba where brand new homes were being sold at prices below what we had come to think was the average for used homes. Two were in Shiroi on the Hokuso Line, each about 15-20 minutes from the nearest station. In one development they were going for as low as ¥13.7 million and the other as low as ¥14.8 million, which is dirt cheap considering that new homes in the same area with the same floor space and land area, and probably less in terms of fixtures and amenities, were likely going for ¥30-40 in the early 1990s. Of course, comparing anything real estate-wise to the late 80s/early 90s in Japan is a chump’s game, but it does provide a perspective that’s instructive when it comes to making priorities. Read More