Asahi Kasei Realty & Residence Corporation and World Residential Co. are starting work on the redevelopment of the former Aoyama Asia Mansion in Shibuya this month. The 5-story, 60-year old condo was demolished in 2020 and will be replaced with a 14-story apartment tower.

Aoyama Asia Mansion was built in 1961. The developer was Asia Jutaku K.K. and they developed three condominiums around Shibuya in the 1960s. The 40-unit building had a total floor area of 2,653 sqm, and used a FAR of 282%. 

Due to the building’s age, it had become increasingly costly to maintain. There were issues with roof leaks, water leaks, and drainage issues that could not be repaired. All 32 land right holders voted in favor of redevelopment. 

The new building will have 61 apartments ranging from 35.36 ~ 81.27 sqm (380 ~ 874 sq.ft). The total building floor area will be 4,872 sqm, resulting in a FAR of 518%, which works out to be 359.93% for the construction permit (common areas, elevator shafts, etc are not included in size limits). Completion is expected by July 2023.

Redevelopment projects can be successful when the zoning for the lot allows for additional floor space to be created with the new building. That extra floor space can be sold by a developer to pay for the development costs. That scenario is rare and sometimes seen with older buildings that were not built to the maximum size for the lot, or where zoning has been changed to allow larger buildings. This site happens to be a commercial zone around Shibuya Station with a FAR of 500%, reduced to 360% due to the street width. Such redevelopments are less likely to be possible in quieter, low-rise residential areas with lower density zoning.

The most recent sale listings in Aoyama Asia Mansion were in 2015 with compact apartments listed for around 600,000 ~ 750,000 Yen/sqm. In the early 2000s they were selling for around 400,000 ~ 500,000 Yen/sqm. Depending on the quality and size of the new apartments, units in the new building might be priced upwards of 1,800,000 ~ 2,000,000 Yen/sqm in the current market (it could be lower for investment-grade, and higher for a high-end offering).

Location

2-5-12 Shibuya, Shibuya-ku, Tokyo

Source: Asahi Kasei Homes Press Release, April 28, 2021.

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