The upcoming Tokyo Olympics have triggered a redevelopment wave that is transforming Tokyo. Massive real estate projects and infrastructure improvements are expected to renew the capital’s landscape and make Tokyo more accessible and attractive. Construction volume took off in 2013, right around the time the city was selected to host the 2020 Olympics.
Some worry the boom might end abruptly. But the first Olympics held in Tokyo in 1964 marked the beginning of a new era for Japan after World War II, and preceded the Izanagi economic boom (1965-1970) that made Japan the world’s second-largest economy. Here, we look at the key development areas in the Japanese capital that investors should know about.
1. The Toranomon-Azabudai area
Zoe Ward of Japan Property Central tells us: "The developments planned around the Toranomon area in the coming years are particularly interesting. The sleepy, old business district is about to undergo major gentrification with a new station on the Hibiya Subway Line, and several office and residential high-rises by Mori Trust and Mori Building. It started with the opening of Toranomon Hills in 2014. The district will be drastically different when the buildings are completed by around 2022. These types of large-scale urban redevelopments take several decades before they get off the ground, so we are just at the right time to see them come to fruition."
The project will include three towers, designed by internationally acclaimed architects and between 240 m and 330 m tall, as well as blocks of lower-rise buildings that will house apartments, shops and office spaces. It will cover more than 8 ha between Roppongi Itchome and Kamiyacho Stations and also includes plans for a pedestrian walkway and green space that will connect the two.
2. Around Tokyo Station
The area around Tokyo Station is the capital’s main business district, and it has been in dire need of modernisation. This process started with the opening of the new Tokyo Station a few years ago that preserved the classic character and architecture on the outside while boasting a completely remodelled interior.
After a short break in development projects, Tokyo Midtown Hibiya opened in March, 2018. The mixed-use luxury complex close to Yurakucho Station is a continuation of the ongoing redevelopment of the area.
In addition, the Marunouchi Nijubashi Building in Marunouchi is scheduled to open in October this year and will offer office space as well as restaurants and shops on 34 floors. Two new towers are also planned in Yaesu, right next to Tokyo Station: a 245 m/45F building in Yaesu 2-Chome and a 250m/54F building in Yaesu 1-Chome, as well as the Yanmar Tokyo Building. Construction is scheduled to start in 2019 and expected to finish in 2023.
3. Shibuya
Shibuya’s cityscape changed forever with the opening of Hikarie Building several years ago. This revitalized a previously underused side of the station, as before visitors only concentrated on the Hachiko side of Shibuya. The station itself is undergoing construction and more developments are planned or already underway.
For example, Shibuya Stream, a 35F complex comprising a hotel, office and commercial space is scheduled to open this month. As the name indicates, Shibuya Stream is right by the Shibuya River, a narrow stream running alongside the Meiji-dori road. The redevelopment project includes plans for a promenade along the river to ease pedestrian movement in the greater Shibuya area and to Daikanyama, an upscale shopping district. The full redevelopment plans include a whole host of other buildings.
According to models of the Shibuya Scramble Square redevelopment, by 2027, the famous Hachiko Square will be overshadowed by skyscrapers and a large passageway over the terminal. As the first fruit of these efforts, Shibuya Station Building East Tower, which is already under construction, is scheduled to open in July 2019.
4. Shinjuku
Shinjuku is not only home to the world’s busiest train station—after the Tokyo-Otemachi area, it is also one of the capital’s most important business districts. The area has undergone a major facelift in the last few years, with efforts to clean up the Kabukicho red-light and nightlife district on the east side. This has now become a more family-friendly tourist spot and several new towers are planned on the west side.
Developments are planned for the Nishi-Shinjuku 5- and 6-chome areas and construction on D Tower Nishi-Shinjuku, also located in 6-chome, started last year. Scheduled for completion in 2020, the 29F tower (plus two floors below ground) will combine office space on the lower floors, together with shops and restaurants, as well as high-end apartments on the top floors.
5. The new Yamanote Line station
A new station is planned on the JR Yamanote Line, the loop that separates central Tokyo from its outer wards. The location will be between Shinagawa and Tamachi stations, which currently leave a larger gap, and the station building will be designed by renowned architect Kengo Kuma.
The area surrounding the station will also be developed, including seven buildings, comprising both apartment and office towers. Construction is scheduled to start in 2020, with completion by 2024.
By Mareike Dornhege
Similar to this:
2020 Olympics to have positive influence on real estate market - Savills Japan
Beyond Tokyo 2020: Prospects for the Japanese real estate market
Tokyo's Yamanote Line: Is it better to buy property on the inside or outside?
