Super high-rise condominium market trends

News

A total of 258 super high-rise condominiums – 103,000 units – will be completed nationwide over the next 5 years.
 
According to research by Real Estate Economic Institute Co, Ltd., the number of super high-rise condominiums – designated as being over 20 floors – that are planned to be completed in Japan between 2020 and 2024, will reach 258 buildings, a total 103,100 units. Compared with the previous survey results in March 2019, this shows an increase of 27 buildings, 8,009 units.
 
The record for super high-rise condominiums completions was in 2009 when 123 buildings, 35,607 units, were completed. However, the stat halved in 2010 due to the influence of Lehman Brothers’ collapse. In 2011, the year of the Great East Japan earthquake, the number of completions diminished to 45 buildings, 13,321 units. 

Conceptual image of Toranomon 5-chome development. Source: Mori Building

In the coming years, there are a lot of large-scale redevelopment projects, with the majority in the central and bay areas of Tokyo – between 13,000–15,000 units are scheduled to be completed in the years 2020–2024. However, there is concern that construction work may take longer than expected and that completions may be delayed due to the spread of the Covid-19 disease. 
 
The 23 Tokyo wards account for over 50% of the 177 buildings, 81,525 units, of the super high-rise condominium planned in the wider metropolitan area, which demonstrates the high market share of the central areas. 
 
Plans are also afoot for so-called extra super high-rise condominiums, which boast over 50 floors. In the Tokyo metropolitan area, there are 18 developments, comprising 25 buildings planned; in the Kansai area, 2 developments comprising 2 buildings are planned; there are 1 building each planned in Hiroshima and Hokkaido. 

Source: Real Estate Economic Institute Co, Ltd. (Publishing date 2020/4/28)

Author: Ryuta Hojo

Ryuta Hojo is in the Sales Division at Housing Japan. He speaks Japanese, English and Chinese and helps our clients to acquire an ideal home in Japan. He researches market trends and news thoroughly to be able to provide the most salient information and give the right advice acting on the buyer’s side.