In Tokyo, “location, location, location” means the three As

Neighborhoods of Azabu, Aoyama and Akasaka see big jumps in land prices as younger buyers favor luxe high rises

New York Weekend Edition /
Feb.February 17, 2018 10:00 AM

Motoazabu Hills building in the Azabu and Park Court Akasaka Hinokicho The Tower in Tokyo

Luxury high-rises in Tokyo usually don’t demand the same sky-high prices than their counterparts in London, Hong Kong and New York. That’s because Japanese buyers, drivers of the local market, eschew luxuries like flashy interiors, a pool in the building or even multiple bathrooms in a unit.

But the importance of location is universal in real estate around the globe. And in Tokyo, the best location has long been and remains the areas close to the emperor’s Imperial Palace.

 

Homes in the capital’s most exclusive neighborhoods – Azabu, Aoyama and Akaska, known as the three As – command the highest prices in the city, according to the Wall Street Journal.

The city’s Minato ward, where the three neighborhoods are located, saw the average price of land jump 11.5 percent last year to the equivalent of $1,420 per square foot, according to the country’s land ministry. That was the biggest increase in all of Tokyo’s 23 municipalities.

Akaska, where prices are the highest, saw land valued at $3,100 per square foot, up more than 50 percent from five years earlier.

Penthouses in the three As and the neighboring district of Roppongi can go for as much as $27 million, and among the clients looking to snap up such homes are the presidents of Japanese companies, lawyers, doctors and executives who work for foreign securities companies.

Properties worth $10 million or more are usually sold quietly to a select group of buyers known among real estate agents because those owners prefer to remain anonymous.

“In the Japanese culture, even if you are wealthy, having too much—it is a bit of a negative status symbol,” said Adam German, head of marketing and vice president at the real estate agency Housing Japan.

But things are changing, and younger generations are looking more like foreign buyers in terms of taste. Local experts say that the declining Yuan and the 2020 Summer Olympics could also attract more foreign buyers. [WSJ] – Rich Bockmann


Related Articles

arrow_forward_ios
Steven Mnuchin and 740 Park Avenue (Getty, Google Maps)
Steven Mnuchin’s $26M home finally finds a buyer
Steven Mnuchin’s $26M home finally finds a buyer
Robert Millard and 9 East 88th Street (MIT Corp, Google Maps)
Former Lehman exec lists Carnegie Hill mansion for $38M
Former Lehman exec lists Carnegie Hill mansion for $38M
April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)
Demand for short-term rentals surges past pre-pandemic levels
Demand for short-term rentals surges past pre-pandemic levels
Cape Cod and the Jersey Shore suffered among the sharpest inventory declines. (iStock)
Here’s where homes virtually sold out in the pandemic
Here’s where homes virtually sold out in the pandemic
1384 Meadow Lane
The 20 priciest Hamptons sales this year
The 20 priciest Hamptons sales this year
Airbnb CEO Brian Chesky. (Airbnb, Getty)
Airbnb’s losing spree continues with $1B loss in Q1
Airbnb’s losing spree continues with $1B loss in Q1
Madison Realty principal Josh Zegen, Raphael Toledano with the properties at 325-329 East 12th Street and 223-235 East 5th Street (Madison Realty, Google Maps, Toledano by Michael McWeeney)
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
Manhattan and Brooklyn saw all-time records in lease signings in April (iStock)
April leases soared across city; so did concessions
April leases soared across city; so did concessions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...