The developers of the 2020 Olympic Village / Harumi Flag project on Tokyo Bay have agreed to pay a portion of sales revenue to the Tokyo Metropolitan Government.
According to Tokyo Governor Yuriko Koike, the agreement, formed in May, stipulates that half of the revenue that exceeds the original proposal by over 1% is to be returned to Tokyo.
Tokyo sold the 13-hectare site to a consortium of 11 developers in 2016 for 12.9 billion Yen (approx. 127 million USD at the time). The price was approximately a sixth of the actual market value. The price was intentionally discounted in order to offset the immense construction cost, which could potentially reach over 200 billion Yen (approx. 2 billion USD).
The apartment buildings will temporarily house athletes for the 2020 Summer Olympics next year. Afterward, interiors will be refurbished, several additional high-rises will be built, and the 5,632 condos and rental apartments will be ready for normal occupancy from 2023 onwards.
Sales officially started on July 26. Sales representatives are confident that the apartments will be popular with buyers, which is why expected sales revenues have been adjusted upwards from the original projections submitted to the local government.
NHK, July 26, 2019.
Jiji Press, July 26, 2019.
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