A new phase of redevelopment could carry global benefits for the Japanese ward of Shinagawa, a new report has found.
As part of its Spotlight series, Savills Japan has examined the attributes of the district, as well as its potential growth areas.
According to Savills, the area’s connection to the Shinkansen line and the redevelopment of the national railway’s marshalling yard in 2003 have helped Shinagawa become an industrial district and, subsequently, a business centre and residential hub.
The report states that Shinagawa's location just outside of Tokyo’s central five wards (C5W) coupled with its well-established business district means its real estate is likely the safest bet in Greater Tokyo outside of the central five wards.
20-29 Year-Old Net Migration by Ward, 2014 to 2018. Source: Savills
"Despite having some of the highest rents amongst Tokyo’s 18 outer wards (18W), the Shinagawa Ward continues to attract a large number of residents in their 20s, with the number picking up over the past two years," the report says.
"As conveniently located and affordable space in the C5W has been essentially unavailable, tenants have been increasingly looking outside of central Tokyo to find office space.
"Shinagawa Ward appears to have been one of the primary beneficiaries of this trend, with its market heating up considerably in recent years."
The report notes the area is now in the midst of a new redevelopment phase designed to transform the Shinagawa district into a global transportation and business hub.
A major milestone of this project has just been reached with the opening of the Takanawa Gateway Station on the Yamanote Line in March 2020.
C5W Rents vs. Shinagawa Ward Office Rents, Q12020. Source: Savills
Savills believes the future of the ward will be secured by a number of mixed-use developments coming online in the surrounding area, culminating in the opening of the Tokyo platform of the Chuo Shinkansen (Maglev line) at Shinagawa Station in 2027.
"The opening of the Takanawa Gateway Station in March 2020, along with the surrounding developments coming online over the next five years, should make both Shinagawa Station and nearby Shinagawa Ward a more attractive area for corporate tenants and residents," the report states.
"The inauguration of the Maglev line in 2027 will further build on this momentum and solidify the area’s position as a global gateway."
Click here to view the report.
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