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

TRD 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
Compass SoCal boss Nick Segal steps down

Compass SoCal boss Nick Segal steps down

Democratic State Sen. James Skoufis (Credit: NY Senate)

Real estate agents facing subpoenas after failing to appear at hearing

From left: 1 West End Avenue, 161 West 13th Street and 66 Ninth Avenue (Credit: StreetEasy and Wikipedia)

Porter House penthouse among NYC’s 5 priciest homes to hit the market last week

15 East 90th Street (Credit: Google Maps)

Lonely townhouse finds a match after years on market

From left: renderings of 1 Propect Park West, 85 Jay Street and 98 Front Street in Brooklyn (Credit: StreetEasy)

The priciest Brooklyn condo filings of 2019

60 East 93rd Street and Carlton Hobbs (Credit: Google Maps and Getty Images)

Why a $68M townhouse listing was abruptly pulled off the market

Zillow President Jeremy Wacksman

Zillow launches its high-stakes home-flipping business in LA

From left: the Ritz-Carlton, 32 East 1st Street, 560 West 24th Street, 301 East 80th Street and 32 West 85th Street

Five priciest homes new to market include 1897 townhouse

arrow_forward_ios
Loading...