According to the Real Estate Economic Institute’s report on the high-rise apartment* market, there 252 residential high-rise development projects currently in the pipeline across Japan. Of those, 173 buildings containing 70,235 apartments (75% of the total) are planned for the greater Tokyo area, and 47 buildings with 15,689 apartments are planned for the Kinki region.
In Tokyo’s 23 wards, there are 111 planned high-rise developments containing 47,037 apartments.
Future supply by area in Tokyo:
- Chiyoda-ku: 4 buildings (926 apartments)
- Chuo-ku: 15 buildings (9,626 apartments)
- Minato-ku: 24 buildings (6,788 apartments)
- Shinjuku-ku: 10 buildings (6,359 apartments)
- Shibuya-ku: 2 buildings (340 apartments)
- Shinagawa-ku: 11 buildings (4,143 apartments)
- Koto-ku: 7 buildings (5,542 apartments)
High-rise rental buildings appear to have fallen out of favour with developers with just 3 buildings containing 99 apartments completed in greater Tokyo over the past two years, and no future projects on the horizon.
High-rise condominiums have been popular with buyers since the late 1990s as they tend to have better resale values (or are less likely to see as much of a drop in value as other apartments). They are also usually built as part of a train station redevelopment and offer convenience to shopping and transport.
Following the economic downturn in 2008, apartment sales took a dive and developers stopped acquiring potential development sites or downsized their plans. Confidence returned to the market in 2013 and the supply of new high-rises is expected to increase over the next few years.
*High-rise apartment buildings over 20 storeys tall.