Rising Luxury Living and Japanese Real Estate: A Closer Look at Tokyo’s High-Rise Trends through the Lens of Sika
Japan is facing a population decline, but the number of people moving to Tokyo, especially wealthy Asians, is on the rise. Despite there being no shortage of housing in the city, high-rise living spaces are becoming increasingly expensive. Thomas Hasler, head of Swiss construction chemicals group Sika, showcases Japanese urban planning from the 34th floor of the Mori JP Tower in Tokyo. He explains to analysts how his company benefits from the rise of Japanese real estate developers.
The Mori JP Tower is part of a major project called “Azabudai Hills” by Mori Real Estate. The tower houses 20,000 employees and 91 luxury apartments, showcasing Sika’s concrete mixes and composite solutions. Ten more high-rise buildings are under construction or planned, alongside many “tower mansions,” catering to the increasing population in Tokyo.
As Tokyo continues to attract workers and seniors, high-rise living with amenities like schools, hospitals, and restaurants becomes more appealing. Foreign investors are also pouring billions into Japan’s real estate market, especially in Tokyo, considered one of the safest investment destinations in Asia. However, this real estate boom has led to record prices for condominiums in central Tokyo, putting a strain on average Japanese earners.
Despite these challenges, the boom is expected to continue in the coming years due to factors such as rising construction costs and increasing demand from foreigners. Luxury apartments play a crucial role in attracting global talent and maintaining Japan’s competitiveness. Sika stands to benefit from ongoing development projects in Japan further solidifying its presence in the market.
In conclusion, Japan’s population may be shrinking but more people are flocking to Tokyo due to its high-rise living spaces becoming increasingly expensive despite there being no shortage of housing. Foreign investors are pouring billions into Japan’s real estate market which has led to record prices for condominiums putting a strain on average Japanese earners but it is expected that this real estate boom will continue driven by factors such as rising construction costs and increasing demand from foreigners making luxury apartments play a crucial role in attracting global talent and maintaining Japan’s competitiveness while companies like Sika stand to benefit from ongoing development projects further solidifying their presence in the market.
