The South Korean pop culture boom in Shinjuku’s “Korea Town” has led to a large increase in surrounding land values.
According to the 2012 Koji-Chika assessed land values, the Shinokubo area in Shinjuku which has a large South Korean population has seen land values increase by 1.7% over the past year. While the nationwide residential land values have fallen by 2.3% and 3.1% in business districts, Korea Town has managed to escape from the declining land values.
The rise in land values in this area sparked many media reports. The increase was due mostly to a renewed interest in the business districts where demand for retail space is outstripping supply.
A prime example is the “Ikemen Dori” street just 380 meters from Shin-Okubo Station. Shops in this area sell all kinds of Korean popstar themed souvenirs and many of the Korean restaurants are said to have handsome waiters. The street is only 2.5 meters wide, but is packed with over 60 cafes, restaurants and shops. On weekends, as many as 30,000 ~ 50,000 people visit the street between 2pm and 7pm.
A local real estate agent said that a store along this street would have rented for 30,000 Yen/tsubo (9,090 Yen/sqm) last year, but recently a 1st floor retail space went for 100,000 Yen/tsubo (30,300 Yen/sqm).
Source: Korea Joongang Daily, March 23, 2012.
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