Signs of Change in the Continuously Rising Real Estate Industry — Asakusa and Kinshicho Are on the Rise, Prices Collapse in Minato-ku and the Bay Area Begins

Prices for condominiums in Tokyo continue to rise. According to Tokyo Kantei, a real estate research company, the average sales price of used condominiums per 70 m2 in the 6 wards of central Tokyo, including Shibuya Ward, topped 100 million yen in November 2022. In view of the continued high prices, changes are likely to occur in popular areas in 2011.

Which areas can still be expected to see price increases, according to Toshiro Nakayama, deputy director of the LIFULL HOME’S Research Institute.

Prices in downtown areas such as Honjo-Azumabashi near Asakusa, Kameido, and Kinshicho are undervalued and are expected to continue to rise. Outside Tokyo, the Sotetsu and Tokyu lines will begin interconnecting in March of this year. Development around Nishitani Station on the Sotetsu Line, which is the starting point for both lines, is progressing, and land prices are expected to rise.

Rie Kusakabe, a condominium trend critic, also says that changes in the route map will affect land prices.

The Tokyo Metro Yurakucho Line (Subway Line 8) has been announced to be extended between Toyosu and Sumiyoshi. We believe that condominiums in Koto-ku, where Nishi-Oshima Station on the Toei Shinjuku Line and Toyocho Station on the Tokyo Metro Tozai Line are located, which are near the area where the line passes through, will attract attention.

On the other hand, where will prices fall? Mr. Kusakabe continues.

The Bay Area of Tokyo, where tower condominiums line the streets, is likely to be the brightest and darkest. Kachidoki, with its easy access, and Ariake, where commercial facilities have been built, are likely to remain popular, but Shinonome, which is saturated with too many tower condominiums, and Odaiba, where commercial facilities are being withdrawn one after another, are likely to decline.

Even in central Tokyo, there are areas where prices may fall, according to the aforementioned Nakayama.

“In the three central wards of Tokyo (Minato-ku, Chuo-ku, and Chiyoda-ku), the number of properties for high-income earners is increasing and prices are rising at an alarming rate,” said Nakayama. Teleworkers are becoming more and more interested in the area, and if vacancies increase as the general buying public shuns them, there is a possibility that demand, which has remained at a high level, will change.

The reality shift is likely to continue.

From the January 20/27, 2023 issue of “FRIDAY