Central Tokyo’s luxury apartment market reaches new highs

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. 

High demand for luxury apartments in Tokyo

The market for luxury apartments in Tokyo has seen a rapid improvement and is at a point where some are comparing it to the mini bubble that occurred prior to the Lehman collapse in 2008.

In June 2014, Mori’s latest high-rise project – Toranomon Hills – was completed. The 52-storey building contains office space, the Andaz Hotel and 172 apartments. Approximately 70 of the apartments were offered for sale with an average price of around 3,000,0000 Yen/sqm, making this the most expensive apartment building in Japan. The sales office was inundated with inquiries prior to sale and lucky apartment buyers were selected by a raffle-type system. All apartments sold out.

Although it is difficult to say that the new apartment market is doing well across the board, the number of luxury developments seeing same-day sellouts is increasing. The share of new apartments priced over 60 million Yen is also rising. In 2013, they accounted for 19.8% of the new apartment supply, up 6.7 points from 2000. The contract rate for new apartments in October hit a five year low of 63.3% in greater Tokyo, but the contract rate for new apartments priced over 100 million Yen has remained over 70% for the past five months. For new apartments in the 200 ~ 300 million Yen range, the contract rate has been between 75% ~ 100%.

Grosvenor to sell luxury apartments in The Westminster Roppongi (aka Roppongi Arents)

International property development group, Grosvenor, will be selling off individual apartments in a luxury residential building adjoining the Roppongi Hills complex.

The Westminster Roppongi (previously named Roppongi Arents) is a 14-storey apartment building that was completed in 2003 – the same time as Roppongi Hills. Apartments range in size from 88.45 to 288.77 sqm (951 ~ 3107 sqft) and have previously been rented for between 470,000 ~ 2,200,000 Yen per month.

Corner unit for sale in Park Mansion Roppongi

Price: 380,000,000 Yen No longer on the market
Size: 155.43 sqm (1672 sqft)

A 3-bedroom corner apartment on the 3rd floor of Park Mansion Roppongi has been recently listed for sale.

At 2,445,000 Yen/sqm, this apartment is more expensive than those in the nearby Roppongi Hills Residence. Current market prices in this building range from 1,800,000 ~ 2,500,000 Yen/sqm. When sales first began in 2007, apartments were listed at 3,800,000 Yen/sqm. The 8th floor penthouse was priced at 4,930,000 Yen/sqm, making it the most expensive apartment on a sqm basis in Japan at that time.

Introducing Ark Hills Sengokuyama Residence

The latest condominium / office project by Mori Building.

*Updated with floorplans and interior images*

Built to a global luxury standard that Mori Building is renowned for, Ark Hills Senkokuyama Residence will undoubtedly be the finest apartment offering in Japan this year. The 243 apartments will have one to five bedrooms and range in size from 56.34 to 416.55 sqm (606 ~ 4482 sqft) and priced from ¥66.3 million to ¥1.35 billion.