Natural disasters have not helped the real estate market in Osaka

20.06.2011 09:36
Articles about real estate | Natural disasters have not helped the real estate market in Osaka Three months later, after the eastern part of Japan came devastating earthquakes and tsunamis, their effects continue to reverberate in the property market in Osaka.Ambitious projects of local developers have not received the recognition of refugees from Tokyo.

Local development companies are suffering from prolonged depression in the property market for the time being cheered up when, immediately after the disasters on March 11, various organizations began to open in Tokyo, Osaka temporary offices. But joy at the revival of the real estate market in Osaka was premature: the mass exodus of companies and organizations in the second on the economic value of the center of Japan has not happened - and, apparently, did not happen, despite the danger of radiation leaks and new natural disasters.

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According to analysts, none of the real estate market segments in Osaka in the near future is not expected to improve the situation. And potential investors, this city is not able to awaken any serious interest. Most likely, the rental rates continue to decline and vacancy rates of office and retail space - to grow. In May, this figure has already reached 12%. And the rental price of one tsubo fell from 11 902 to 11 852 yen, ie, 1 square. m the owners were willing to donate just $ 44.

Tokyo's economy is about three times the amount of money that authorities are dealing with Osaka Prefecture, where about 8.9 million people. Not long ago, the largest supplier of electricity in the region, the company Kansai Electric Power, urged consumers to the maximum electricity savings due to the shutdown of nuclear power plants over the spring events. The need to save not the best impact on the economic situation in the region, experts polled by Reuters.

According to the representative offices of Japanese consulting firm CB Richard Ellis, most entrepreneurs are trying to gain a foothold in Tokyo and are not interested to open offices in Osaka or elsewhere in the country. Companies are developing new shopping and office centers in the same Tokyo, while other cities entrepreneurs "homeless" does not have enough. Yes, giants like Toshiba has a publishing house or Recruit Co, after the earthquake, moved to low-cost and large "mansion" in Osaka, but do not want to abandon their former premises in Tokyo, noting that their buildings are not so badly affected by earthquake .

Construction of new buildings in Osaka nearly sank. Most of the commercial and office buildings was laid in 2006 and 2007. When fierce competition drove some developers from Tokyo to the city of the second order. However, the vast number of ambitious projects have remained incomplete.

At the end of 2011 to the already crowded market of vacant office buildings in Osaka will order 790 000 new "squares." Meanwhile, according to realtors, even such interesting buildings as Umeda Hankyu and 28-storey Fukoku Seimei Building, reconstruction of the past as recently as 2010, only filled to 70%.

Particularly evident for hunting lessees should be in 2013, when the real estate market in Osaka will add at least another 60 000 "squares" of the new retail and office project Grand Front Osaka, for the construction of which together more than 10 real estate companies, including Mitsubishi Estate, Orix Corp and Sekisui House.
Content tags: Overseas property
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