Ober Grandio Shinagawa Katsushima 2

All 452 apartments in a 20-storey building under construction in Tokyo’s Shinagawa-ku have sold out 12 months prior to delivery.

Ober Grandio Shinagawa Katsushima is a new development by Taisei-Yuraku Real Estate and Haseko Corporation. Is is located on Katsushima – a man-made island built in 1949 as a warehouse district.

Sales were supported by pricing that was comparatively low for the Shinagawa area. 70 sqm (753 sq.ft) 3-Bedroom units were priced from 38 million Yen (355,000 USD), and 80 sqm (861 sq.ft) 4-Bedroom units were priced from 46 million Yen (429,000 USD).

The 452 apartments ranged in size from 62 ~ 85 sqm (667 ~ 915 sq.ft), and sale prices ranged from 33 ~ 61 million Yen. Completion is scheduled for January 2017 with apartments ready for delivery to buyers from March 2017.

27% of the buyers were existing residents in the Shinagawa ward area. 65% were aged in their 30s and 40s, and 40.3% of the buyers were 2-person households.

The surrounding area is still primarily warehouses, which meant that the land could be purchased quite cheaply by the developer, with the lower costs passed onto consumers.

The island has only recently started to see the effects of gentrification. In 1995, there were 901 households registered in Katsushima. In 2014, this number increased only slightly to 1,021 households, indicating almost no change in population over 20 years. The completion of several residential buildings on the island is expected to double the island’s number of households by 2017.

Ober Grandio Shinagawa Katsushima

Not all projects on this island have had the same degree of success. The nearby Branz City Shinagawa Katsushima condominium was completed in July 2015, yet apartments still remain unsold by the developer. The pricing may be partly to blame for the slower sales, with apartments priced about 20 ~ 30% higher than those in Ober Grandio.

Sources:
The Jutaku Shimbun, April 19, 2016.
R.E.Port, April 13, 2016.
The Asahi Shimbun, September 3, 2015.

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