The May opening of Tokyo Sky Tree is set to revitalize the the old ‘shitamachi‘ area as it will bring retail stores, tourists and new bus routes. When a neighborhood undergoes a transformation such as this, residential rents are expected to see a sudden rise in prices.
However, in April, Home Advisor conducted a survey of real estate agencies near Sky Tree and almost 90% responded that they had seen no affect on rent. 9.7% of respondents said that rent had increased during the time of the tower’s construction, and 86.1% reported no change.
Sky Tree vs. Tokyo Tower
Home Advisor also asked agencies if there was a difference in rent between rooms in an apartment building that have views of the either Sky Tree or Tokyo Tower, and rooms that do not. 2.3% said that rooms with a view of Sky Tree had a higher rent, while 43.8% said that views of Tokyo Tower commanded higher rent. The average difference in rent for studio apartments near Sky Tree was 2000 Yen/month for an apartment with a view. In Minato-ku, where rents are typically higher, the difference was over 10,000 Yen/month.
Some agents were optimistic and mentioned that rents around Sky Tree were falling, but rooms with a view of the tower have not fallen as much. Prospective tenants prefer a room with a view of the tower, but are not willing to pay extra for it. With the current economy, it is difficult to fill rooms, but those with a view of the tower are easier to rent out than those without.
While Sky Tree is expected to have various economic results for the area, an increase in rent is not one of them. Despite being only half the height of Sky Tree, the 50+ year old Tokyo Tower is still a clear winner.
Oricon, April 18, 2012.
Business Media, April 18, 2012.
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