Buying a Property in Tokyo | Edogawa Chapter 1: Koiwa, Kasai
In this “Buying a Property in Tokyo” series, we will introduce the environment of Tokyo’s wards with high yields, as well as their market performance and forecast. Let’s explore property investment opportunities in Tokyo!
The first ward to be introduced is Edogawa. According to our analysis, Edogawa ranked first by gross rental yield in 2020 amongst the 23 wards. Edogawa, as its name suggests, is located on the left side of Edo River. It has a population of about 690,000, in which its population of foreigners ranked second following Shinjuku.
Edogawa can be divided into 5 sub-areas, namely Chuo, East, Hirai, Kasai, and Koiwa. In this chapter, let’s first get to know about Koiwa and Kasai, which have relatively higher railway station usage rates than the other three sub-areas.
Koiwa Redevelopment to Create Competitiveness
The two main railway stations in Koiwa are Koiwa and Shin-Koiwa along the JR Sobu line. The JR Sobu line connects the two stations directly to Akihabara. It takes around 30 minutes to arrive at the commercial areas in the city centre such as Otemachi, Marunouchi, and Nihonbashi.
From the South exit of Koiwa station, there is “Flower Road”, Edogawa’s largest shopping arcade. It is 1,733 meters long and has more than 300 stores. There is a flowerbed contest held every May, making the area more lively.
The JR Koiwa station has been in operation since 1899, with a history of more than 120 years. As the times change, the retail performance around the station is deteriorating, the streets are aging, and the population of young generations is also decreasing. To create competitiveness for Koiwa, since 2007, the Edogawa City Government has begun to plan the redevelopment of the area around Koiwa Station. It collaborates with several real estate developers to build large-scale residential areas, shopping streets and amenities, as well as convenient transports to the city centre. The importance of providing a quiet living environment is also emphasized to have residents being able to enjoy walking around. The southern redevelopment construction started in 2019 while the construction of the plaza at the North exit of the station will start in 2022 and is expected to be completed in 2029.
Source: Edogawa City Website
Green Living in Kasai; Tokyo Disneyland is Nearby
Between the 1940s and 1970s, due to the rapid economic growth of the post-war revival, the water quality of Tokyo Bay was seriously polluted. Not only was there an outflow of factory wastewater, land subsidence also occurred resulting from the over-pumping of groundwater. In order to create land that supports the urban development of Tokyo and protects the environmental ecosystem, the Tokyo Metropolitan Government has adopted the Kasai development plan since 1970, carrying out land reclamation and land consolidation projects.
After the development, now Kasai has a couple of large parks, including Fuji Park, Shin-Sakongawasui Park, Kyousen Park, and Kasai Rinkai Park. Kasai Rinkai Park is the largest park in Tokyo, with a Ferris wheel, an aquarium, a bird park and so on. Kasai Rinkai Park has one station along the JR Keiyo Line. It takes about 10 minutes to get to Tokyo Station. The next stop in the opposite direction is Maihama Station in Tokyo Disneyland. The green living environment of Kasai is appealing to families with children.
Kasai’s other main stations are Kasai Station and Nishi-Kasai Station along the Metro Tozai Line, Tokyo’s busiest railway line. The Metro Tozai Line provides direct access to major business districts in the city centre, such as Otemachi and Nihonbashi. It takes only about 20 minutes, so it is convenient to commute to and from work.
Besides park facilities, Kasai also has Tokyo’s largest golf driving range Lotte, which is open 24 hours a day, attracting many golf lovers to come by.
In addition, according to Tokyo Metropolitan Statistics, more than 30% of the Indians living in Tokyo live in Edogawa, particularly Nishikasai. Nishikasai is known as “Little India”. A lot of Indian restaurants and Indian food stores can be found there. There is also an international school for Indians called Global Indian International School。
Property Valuation, Estimated Rent ＆ Rental Yield Reference
According to real estate transaction data from the Ministry of Land, Infrastructure, Transport and Tourism, in 2020, the prices of existing properties around Koiwa Station rose by about 14% year-on-year, while Kasai Station and Nishikasai Station increased slightly by 2.8% and 3.3% year-on-year respectively. The following existing property market information of Koiwa and Kasai are based on the estimates provided by the Proptech company PriceHubble based on its A.I. valuation model*.
The property criteria set include property age of 10 years and 30 years, property size between 30m² and 70m² and an around 5-minute walk from the railway station.
* based on the estimate results as at June 8 , 2021
In Edogawa Chapter 2, we bring overseas investors to visit the other 3 Edogawa sub areas to learn about the living life in Tokyo and exploit any potential property investment opportunities!
PriceHubble is a Swiss B2B proptech company that builds innovative digital solutions for the real estate industry based on property valuations and market insights. Leveraging big data, cutting-edge analytics and great visualization, PriceHubble’s products suite brings a new level of transparency in the market, enabling their customers to make real estate and investment decisions based on the most accurate data-driven insights (such as valuations, market analyses, value forecasts or building simulations) and enhance the dialogue with end consumer. PriceHubble’s digital solutions are designed to help all players across the entire real estate value chain (banks, asset managers, developers, property managers and real estate agents). PriceHubble is already active in 9 countries including Switzerland, France, Germany, Austria, Japan, and the Netherlands and employs more than 130 people worldwide.
WealthPark is a real estate technology company that provides online and offline asset management services for overseas investors with properties in major cities of Japan, including Tokyo, Osaka, Yokohama, Nagoya, Kyoto, Fukuoka, and Sapporo.
WealthPark partners with real estate brokers and technology companies in order to provide
investors with comprehensive asset management and property transaction services.
WealthPark will continue to expand its digital platform to create and improve user experience.
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