House-hunting with a personal touch

Located on the seventh floor of the Tokyo Midtown Tower in Roppongi, Mitsui Real Estate Sales Co.’s luxurious, more than 250-sq.-meter "Mitsui Real Plan" salon is at the core of the company’s new real estate brokerage service catering exclusively to the needs of foreign nationals living in Japan. Since 1985, the company has been providing a reliable, detail- oriented, customized and exclusive real estate brokerage and asset management support service tailored to the highest levels of Japanese society under the Mitsui Real Plan brand. The new service, launched this April, provides the same exclusive service to foreign nationals in English. The service focuses on the prestigious central Tokyo area, including Minato-ku, Shibuya- ku, Chiyoda-ku and their vicinities.

"From about four years ago, we started to see a sudden increase in the number of walk-in foreign customers at our service locations," says Masaru Yokomizo, group leader of Mitsui Real Plan’s Brokerage Department Sales Section.

"Until six or seven years ago, the deals regarding foreign clients were mostly the purchase of homes by top executives or investors, but then a couple of years later, we started to see more and more foreign clients wanting to purchase condominiums in the ¥100 million to ¥200 million price range. The brokerage performance for foreign clients in 2007 increased 40 percent compared to 2006. The way that foreign residents purchase real estate is changing and that can provide new business opportunities for us."

One key factor of this trend seems to be related to the increased choice of housing loans available to foreigners. "The options have dramatically expanded in the last five to six years," explains Yokomizo. "Before that, it was difficult for foreigners to purchase property in Japan unless they had enough cash in hand. But now, Japanese and foreign banks, as well as mortgage lenders offer a variety of loans for foreigners."

Azabu Kasumicho Park Mansion is located in the historical area that feudal lords and the Mitsui family’s guesthouse in the Meiji Era.

Today, Mitsui Real Plan’s foreign clients are mostly international families with a Japanese spouse who are staying long term in Japan. Most of them are from Europe or the United States whose first or second language is English. The demand for condominiums is strong, but single-family homes are also wanted by those with large families. In terms of asset value, the rental return of the property becomes a significant factor when purchasing condominiums. There are many real estate companies targeting foreign residents in central Tokyo, however, Mitsui Real Plan stands out by providing a service that goes beyond simply buying or selling a property.

"We consider ourselves as the customer’s personal real estate and asset portfolio concierge. We would like to support our clients, in cooperation with experts from all fields, by providing a flexible and detailed service that caters to the needs of each customer. A consultation service is available on a long-term basis even after the transaction has been completed," Yokomizo says. When it comes to real estate deals, there are many legal and cultural differences between Japan and other countries.

Personal touch: Masaru Yokomizo, group leader of Mitsui Real Plan’s new English service, and a staff member welcome customers to the Real Plan Salon in Roppongi’s Tokyo Midtown Tower. (Below) The spacious, more than 250-sq.-meter salon, which has private meeting rooms, is the base for Mitsui’s detail-oriented, customized support service.

"We respect the client’s customs, such as having their own lawyers and accountants at the negotiating table, which is rare in Japan. In such cases, we work together as a team to support the client together." In many cases, real estate customs in Japan can be hard to understand for foreign clients. "For example, there is the concept of defect liability, which under Japanese civil law makes it the seller’s responsibility to repair defects found during a certain period of time after the transaction is completed. The period can range from three months to two years, and the type of defect varies depending on the agreement and whether each party is an individual or a corporation.

This is based on the strong custom of consumer protection in Japan. In contrast, in the United States, the basic concept is that you purchase at your own risk," says Yokomizo. "We would go through these matters step by step so that the foreign client can fully understand them." Generally, real estate contracts and the explanations provided by the real estate brokerage agent are in Japanese.

To accommodate their foreign clients, Mitsui Real Plan is preparing an English reference translation of the contract documents such as The Agreement for Sale and Purchase of Real Estate, Important Factors of Transaction and Property, and Brokerage Service Agreement, which are scheduled to be ready later this year. "We hope that these tools will help clients to understand the contract and feel more comfortable," says Yokomizo.

At Mitsui Real Plan, clients can receive detailed professional advice on the real estate market, ranging from its history and culture to future perspectives. "The real estate market in central Tokyo can be very complex," explains Yokomizo. "For example, properties just a block apart can have a price difference of a million yen per ‘tsubo (3.3 sq. meters),’ or a penthouse condominium can cost ¥2 million more per tsubo than the room on the lowest floor. By providing detailed property and area information to clients, we make sure that the property is what the client is looking for. Sometimes, we even advise them to think again."

Mitsui Real Plan also provides area information on its Web site, which covers properties like Azabu Kasumicho Park Mansion in the historical area that once housed Edo Period feudal lords and the Mitsui family’s guesthouse in the Meiji Era, and Park Mansion Chidorigafuchi, which overlooks the Edo castle moat, famous for its cherry blossoms in spring.

Mitsui Real Plan also offers an overseas property service for Japanese. In cooperation with local agencies, the service provides real estate market information and referrals to local brokers for areas like Hawaii, New York, Los Angeles and Australia, free of charge.

In the future, the company plans to offer a Japanese property brokerage service to foreigners living outside of Japan. Together with its existing service for residents in Japan, Mitsui Real Plan aims to establish a cross-border, longterm real estate concierge service.

"Our services will ensure that foreign residents receive a complete and reliable real estate brokerage service by utilizing the exhaustive database and network of Mitsui Real Plan, which has been in the business for more than 20 years. We invite you to contact us at any Mitsui Real Plan location or by e-mail, or through our toll-free English number," Yokomizo says.

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