To cater to growing demand, Tokyu Land is expanding the development of 100 million Yen+ condominiums in central Tokyo’s six wards. They currently have four high-end projects under development in Tokyo and have increased their sales staff by 20%. Their target buyers are wealthy seniors and dual-income households.
Two of their luxury projects include Branz Roppongi The Residence (Minato-ku) and Branz Nagatacho (Chiyoda-ku). Branz Roppongi The Residence is a 51-unit, 8-storey building located 200 meters from Tokyo Midtown. Completion is scheduled for February 2019. The average apartment price is 550 million Yen (approx. 4.9 million USD), and 40% of the apartments have already sold off-the-plan.
A third of the apartments in Branz Nagatacho have sold since sales began in September. Completion of the 14-storey, 21-unit building is scheduled for February 2019. The average apartment apartment price is 280 million Yen (approx. 2.5 million USD), while a 178 sqm apartment is priced at 610 million Yen (approx. 5.4 million Yen).
In December, Branz Roppongi Iikura-katamachi will go on sale. The 5-storey, 33-unit building is due for completion in December 2018. Most apartments will be priced around 200 million Yen, with the most expensive apartment to be priced at 500 million Yen. The sales office has already received 2,000 inquiries.
Branz Rokubancho is a 15-storey building located a 6 minute walk from Yotsuya Station in Chiyoda’s Bacho area. Many of the apartments are family-type units sized at around the 70 sqm (753 sq ft) range. The average price will be around 2.1 million Yen per square meter (approx. 1,750 USD/sq ft). Pre-sales marketing to VIP clients has already started, with a third of the apartments already under negotiation.
Strong market conditions for luxury apartments in Tokyo
According to the Real Estate Economic Institute, a total of 1,265 brand new apartments priced over 100 million Yen were released for sale in 2016, the second year in a row to record an increase. Between 2010 and 2012, the annual supply was around 600 ~ 900 units. In 2013 the supply reached 1,500 units before dropping to 900 in 2014.
The Nikkei Shimbun, November 16, 2017.
R.E.Port, November 15, 2017.