At a time when many of the market economies in Asia are just starting to develop and take off, what people have begun to see is that many of the property markets in those different countries are taking off at staggering rates.
This appears to be the case in Japan as well. In the city of Tokyo, the rental prices of many office buildings in the city are still climbing at a very fast rate. The average rents have increased between 1% and 3% in the last month depending on where in the city the office building is located, and it is expected that those rents will continue to increase fuelled by a strong demand coming from many of the business interests now looking to do business in Japan in wake of the increased privatization the government has started to encourage.
In fact, the demand has become so great that the Japanese government has seized on a chance to get some much needed expansion funds and has put a prime piece of property up for bidding starting March 4th.
The property is located in the Fujimi district of Tokyo and was previously the residence of the Philippine’s ambassador to Japan. The company that wins the bidding will be required to develop the property into a commercial area as well as provide fees to the Japanese and Filipino governments while at the same time providing a space for the residence of the ambassador while the development is taking place.
The property, which is being put on bid for a lease of 50 years, has already sparked much interest from corporations that are looking forward to doing business in Japan with the blessing of the Japanese government, and with demand increasing for office buildings, one can expect an influx of workers into the country and that, in turn, promises to make the residential housing markets very interesting to watch over the course of the next few years.