Central Tokyo’s population growth a strain on local governments and schools

Central Tokyo’s population growth forecasts are causing local governments to take a closer look at development guidelines in order to alleviate strains on schools and childcare facilities.

Koto ward has been struggling with a shortage of schools for many years. In 2002 they introduced a 1.25 million Yen levy per apartment, payable by developers, on apartment buildings with over 30 apartments, with the funds going towards the expansion or construction of schools. In 2018, the developer of a 1,200-unit complex donated a school site to the ward in lieu of the 1.5 billion Yen levy.

Nevertheless, Koto is not able to keep up with the apartment construction boom and growing population.

Suginami to spend up to 1 billion Yen restoring historic home

Suginami Ward in Tokyo is budgeting up to 1 billion Yen for the restoration of the 91-year old Tekigaiso Villa. The traditional Japanese home was once the private residence of former Prime Minister Prince Fumimaro Konoe. The property, which includes 6,000 sqm of land and gardens, was acquired by Suginami in February 2014 for 3.1 billion Yen (approx. 30 million USD at the time).

Japan land prices increase in 91% of locations – highest share in history

According to the quarterly LOOK report issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in the first quarter of 2018, land prices have increased in 91% of the surveyed locations. This is the first time the percentage has exceeded 90% in the history of reporting.

The main factors behind the rising land prices include positive conditions for the office market in central Tokyo, Osaka and Nagoya, major redevelopment projects, surging tourism numbers and expenditure, and strong demand for apartments that are close to transport. These factors are also encouraging investment into the office, retail, hotel and residential sector.

New apartment supply shrinks for 2nd month in a row

According to the Real Estate Economic Institute, 2,462 brand new apartments were released for sale across greater Tokyo in May, up 5.1% from the previous month but down 5.4% from last year. The average sale price was 60,300,000 Yen, up 8.7% from the previous month and up 0.8% from last year. The average price per square meter was 895,000 Yen, up 11.9% from the previous month and up 3.9% from last year.