Mitsubishi Jisho Residence and Cosmos Initia have acquired a large development site near Shibuya Station. Details have yet to be announced, but industry insiders suggest that, given the size of the land, it could be slated for a luxury condominium project.
Update: The project is called The Parkhouse Shibuya Nanpeidai. Pre-sales for Hong Kong-based buyers began in September 2017, with prices starting from around 145 million Yen. The 10-storey building will have approximately 100 apartments with completion by May 2019 or later.
The 3,300 sqm (35,500 sq.ft) site in Nanpeidaicho is located near the Cerulean Tower Tokyu Hotel and a 5 minute walk from Shibuya Station’s South Exit. It was purchased from Japan Tobacco for an undisclosed price estimated somewhere in the several billion Yen range. The site included a 5-storey office building which is currently being demolished.
In Minato-ku or Chiyoda-ku, a luxury development of this size would barely raise an eyebrow due to the high demand for luxury housing in these districts. But what about the immediate area around Shibuya Station? It is still largely a densely crowded commercial district and is far from anything resembling a high-end residential neighbourhood. This particular part of Nanpeidaicho is also largely a commercial area with a few older apartment buildings and is about 40 meters south of an expressway.
Lately, however, developers have been forced to look further afar. Popular areas such as Minato and Chiyoda have very few potential development sites remaining, while the Shibuya Station area is priming itself for a large-scale redevelopment over the next 10 years.
Shibuya-ku has recorded the highest increase in new apartment prices out of all of Tokyo’s central five wards, with the average price of a new apartment in the first quarter of 2016 reaching 119,050,000 Yen (1,070,000 USD), 2.1 times the price seen three years ago.
Fuelling the boom is demand from wealthy Japanese investors who are looking to change their money out of the stock market, which soared in 2015, and into real estate. Foreign investors, too, are actively seeking opportunities in Tokyo real estate, although they make up an arguably smaller share of the market.
Kenplatz, May 20, 2016.
The Nikkei Shimbun, May 21, 2016.