Although completion is not expected until August 2014, 630 of the 1,110 apartments in Skyz Tower & Garden in Toyosu have already sold.
The man-made islands on Tokyo Bay have been undergoing a slow gentrification over the past 10 years or so as factories and warehouses are gradually being replaced by high-rise apartment buildings and shopping malls.
The islands are already home to some large-scale redevelopments, including The Tokyo Towers (2008) and Triton Square (2001), while many more projects are in the pipeline.
This area was usually thought of as a cheaper alternative to apartment living in the more central areas in Tokyo, while still offering an easy commute. However, prices in some apartments can now be as high as those in Minato-ku. The growing popularity of the area, however, does not mean every project is guaranteed strong sales.
With the total number of new apartments released for sale in May up 50% from last year, and a contract rate of 78.1% in greater Tokyo, there are strong expectations that Abenomics will lead to increased property values. Major banks increased their 10 year fixed mortgage rates for the second month in a row. With rising interest rates and an expectation of rising real estate prices, buyers are feeling added pressure to purchase.
Normally the summer season is a slow one for apartment sales, but with an expected increase in consumption tax next year the last minute rush from buyers is expected to continue throughout the summer. However, the recent correction in the stock market at the end of May might have cast some doubt over the chance of a prolonged recovery in apartment sales.
One new condominium that could be a barometer of market conditions is Skyz Tower & Garden in Toyosu, Koto-ku.
Sales of apartments in Skyz Tower & Garden in Toyosu are scheduled to begin in July. This is part of the ‘Tokyo Wonderful Project’ redevelopment of a 32,000 sqm site that was once a Tepco-owned thermal power station.
The 150m tall condominium will contain 1,110 apartments ranging in size from 53.25 to 130.92 sqm (573 ~ 1408 sqft) and priced from 35 to 139 million Yen. A 74.50 sqm 3-bedroom apartment will be priced around 55 million Yen (738,000 Yen/sqm), and some apartments will be priced over 100 million Yen. Over 10,000 inquiries have been made prior to the opening of the showroom this coming weekend.