Rising Apartments and Falling Housing: Tokyo’s Real Estate Boom Amidst Population Decline

Tokyo’s Real Estate Market: An Attractive Investment Destination Despite a Housing Shortage

Despite Japan’s declining population, Tokyo is experiencing an influx of people, especially the wealthy. The city’s high-rise buildings are becoming increasingly expensive despite the lack of a housing shortage. Thomas Hasler, head of the Swiss construction chemicals group Sika, showcases Japanese urban planning at the Mori JP Tower in Tokyo, one of the newest and tallest skyscrapers in Japan. Hasler explains how Sika benefits from working with Japanese real estate developers.

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, particularly 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’s center, making it challenging for average Japanese earners to afford housing.

Luxury apartment projects like “Azabudai Hills” are essential for Japan to attract global talent and maintain its competitiveness. The ongoing construction boom in Tokyo presents opportunities for companies like Sika who supply products for high-rise developments. Despite the challenges posed by rising prices and limited availability of land, Tokyo remains an attractive investment destination due to its political stability and robust economy.