Shibuya City Office redevelopment under review

Shibuya City OfficeThe redevelopment of the Shibuya City Office and Shibuya Public Hall (C.C. Lemon Hall) is under review due to a potential cost blowout. A shortage of skilled construction labour and rising material costs have caused the estimated construction costs to increase by around 30 ~ 50%.

The new government office and public hall is expected to cost 15.4 billion Yen. It was anticipated that the costs of rebuilding could be fully funded by leasing a portion of the land to developers. Approximately a third of the 12,400 sqm site will be leased under a 70-year term to developers who originally planned to construct a 37-storey condominium containing 414 apartments. Although the size of the leased land will not change, the local Shibuya government is considering increasing the floor space ratio for the land to allow a larger building with more saleable area.

Source: The Tokyo Shimbun, November 1, 2014.

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