Tokyo Midtown

Although sales are sluggish in suburban areas, a sales war is erupting between Japan’s top property developers as they battle to out-do each other with luxurious residential projects in Tokyo’s centre. The battleground is Tokyo’s Minato Ward, in wealthy neighbourhoods where prices have always been relatively high.

Many of these new condominium developments are located in the vicinity of Tokyo Midtown – a mixed-use office, retail, hotel and rental apartment complex in the Akasaka/Roppongi district. 

Roppongi 4 Chome Project

Roppongi 4 Chome Project

Shrouded in secrecy and with sales occurring in private to VIP clients only, this as-yet-untitled project by Mitsui Fudosan Residential is arguably in one of the best locations in Tokyo.

Apartment prices, although they have not been announced, were rumoured to be around 6,000,000 Yen/sqm (5,500 USD/sq ft) for apartments facing Hinokicho Park and 3 million Yen/sqm (2,700 USD/sq ft) for units without park views. The 600 square meter penthouse was rumoured to have sold for somewhere between 5 ~ 6 billion Yen (approx. 49 ~ 59 million USD). If true, this would be the most expensive apartment sold in Japan in history, exceeding late 1980s bubble pricing.

Completion is due by April 2017, and there are already rumours that the apartments have all sold out despite no public sales promotions.

Proud Roppongi

Proud Roppongi

Developed by Nomura Real Estate, the 5-storey apartment building is one block back from Tokyo Midtown and 800 meters from Roppongi Hills. It was originally the site of the Homat Sun rental apartment building. The land and old building was sold in 2010 for 3.2 billion Yen (approximately 40 million USD at the time).

The first round of sales has already ended, with the most expensive apartment priced at over 3 million Yen/sqm (2,700 USD/sq ft). The largest apartment – a 318 sqm penthouse with rooftop terrace – has three bedrooms and three bathrooms. Apartments under 200 sqm have just one bathroom.

17 apartments were offered for sale in the first round of sales. They were priced from 232 million ~ 1.04 billion Yen (approx. 2.3 ~ 10.2 million USD). 16 apartments, including the penthouse, received applications.

The 35 apartments range in size from 100 ~ 318 square meters. Completion is scheduled for the end of October 2017.

Park Court Akasaka Hinokicho The Tower

Park Court Akasaka Hinokicho The Tower

A Kengo Kuma-designed 44-storey apartment tower located on a site adjoining Midtown.

The 203 square meter penthouse apartment sold for 1.5 billion Yen (approx. 14.7 million USD), making it the most expensive new apartment to be sold in 2015.

South-facing apartments, which have views of Tokyo Midtown and Hinokicho Park, were priced the highest in the building with an average price of around 3.1 million Yen/sqm (2,850 USD/sq ft). North-west and west-facing apartments had an average price of around 2.7 million Yen/sqm (2,450 USD/sq ft).

In the first round of sales held in November 2015, all 152 apartments received applications. The building was over-subscribed with 289 applications on the 152 apartments. The most popular apartment – a 65 square meter 1-Bedroom unit priced at 170 million Yen – received a total of 18 purchase applications. When there are several applications, the buyer is selected via a raffle-type system.

The building is now over 90% sold. Completion is due in February 2018.

Park Court Aoyama The Tower

Park Court Aoyama the Tower

Located on the northern end of the historic Aoyama Cemetery and 1,000 meters from Tokyo Midtown. The 26-storey condominium is being developed by Mitsui Fudosan Residential.

The unique curved glass facade makes this building a stand-out luxury residence. Residents will be able to enjoy an infinity pool overlooking the skyline, a movie screening room and resident lounge. The largest apartment is a 234 square meter, three bedroom apartment with two bathrooms.

Prices have yet to be announced, but based on pricing of nearby projects, prices in the 3 million Yen/sqm range could be expected.

Sales are scheduled to begin in October 2016. The building is due for completion in early 2018.

Future of the luxury apartment market in Tokyo

According to the Real Estate Economic Institute, brand new apartment sales have been falling for the past 6 months as developers cut back on supply. Despite the general decline, the sub-market for luxury condominiums is booming as developers seek out prime locations where demand for luxury residential properties remains strong.

In prime locations, high-end developments can still turn profits for developers. In suburban areas, however, rising construction costs and a limited budget from buyers means that projects outside of central Tokyo are becoming less profitable for developers. According to the director of the Institute, the market for high-end developments in central Tokyo is expected to remain stable.

Source: Sankei Biz, July 14, 2016.

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