Tokyo’s population is on the decline, but the city is experiencing an influx of people, particularly the wealthy. Despite a lack of a housing shortage, high-rise buildings in Tokyo are becoming increasingly expensive. Thomas Hasler, head of Swiss construction chemicals group Sika, showcases Japanese urban planning at the Mori JP Tower in Tokyo. Hasler explains how Sika benefits from working with Japanese real estate developers.
With over 200 buildings in Tokyo standing higher than 150 meters, including 53 that are taller than 187 meters, the city’s vertical expansion is accelerating. The Mori JP Tower is part of a project by the Mori Group that features three high-rise buildings, space for 20,000 employees and 91 luxury apartments. The demand for high-rise buildings in Tokyo is driven by the scarcity of land and increasing population.
Tokyo’s growing population is attracted to the city’s economic and cultural opportunities, leading to the construction of more high-rise “tower mansions” to accommodate residents. Foreign investors from China, Hong Kong, Taiwan and Singapore are also investing heavily in Tokyo’s real estate market. This has resulted in record prices for condominiums in the city center, making it challenging for average Japanese earners to afford housing.
Despite this challenge, Tokyo remains an attractive investment destination due to its political stability and robust economy. The city’s real estate developers expect condo prices to continue rising due to increased construction costs and insulation requirements and strong demand from foreigners. Additionally, Japan’s weak yen makes Tokyo relatively more affordable compared to other global cities.
Luxury apartment projects like “Azabudai Hills” are essential for Japan to attract global talent and maintain its competitiveness. The ongoing construction boom presents opportunities for companies like Sika who supply products for high-rise developments. Despite challenges posed by rising prices and limited availability of land
