Posts Tagged ‘high-rise condos’

Retiring boomers make their last stand on the real estate market

Monday, February 9th, 2015

Onward and upward: Diorama showing high-rise condos under construction on Tokyo's waterfront

Onward and upward: Diorama showing high-rise condos under construction on Tokyo’s waterfront

Following the 2011 Eastern Japan Earthquake, sales of high-rise condominiums in Tokyo saw a drop that reflected anxiety over living so far off the ground. Though no high-rises were damaged in the temblor (if anything, the disaster showed how well they’d been built to withstand earthquakes), matters such as stopped elevators and the possibility of losing water or other utilities even temporarily were made apparent to tower dwellers. More significantly, elderly people who lived high up realized how difficult it would be to evacuate in the case of a quake hitting the city more directly.

The sales decline was short-lived. High-rise condos, or “tower mansions,” are as popular as ever right now, and according to a recent article in Shukan Asahi, especially popular among retired and soon-to-be-retired people.

With the memory of the quake receding and developers promoting even safer high-rises, the aging baby boom generation is looking at the issue from a practical standpoint. The article profiles a 60-year-old woman named Midori Takahashi who bought her condo four years ago in Koto Ward on the Tokyo waterfront, in a new high-rise 10 minutes by foot from Kiyosumi Shirakawa Station on the Hanzomon Metro line. She and her 57-year-old husband bought the property after assessing the situation of her own parents, who lived in Shizuoka City. When her father retired, he bought a house in the countryside, near a river with a beautiful view, since he wanted to spend the rest of his life surrounded by nature. But as his health deteriorated he found it difficult to make regular visits to a hospital, so he moved back to the city.

Takahashi and her 57-year-old husband are childless. They have their own health concerns, and when both were forced to retire early they sold their Tokyo home and bought an ekichika (close to station) high-rise condo, also in Tokyo. They are close to hospitals and retail outlets, and with two train lines within easy walking distance they can get anywhere without having to drive. Moreover, they’ve found that most of the people in their building are the same age, and have thus joined a new community with relative ease.

CONTINUE READING about the changing real estate market for boomers →

Back to business as usual for condominium developers?

Friday, November 11th, 2011

Construction activity in the old North Yards near Osaka Station, December 2010

Last month a model room opened for a new condominium complex in Osaka with the revealing name Owner’s Tower. Part of the new Grand Front development project situated in the huge tract of land near Osaka Station that once was home to the Japan National Railways Umeda North Yard cargo terminal, the new residence is a forthrightly upscale facility that targets high-income buyers, in particular foreigners who are looking for a second home in Japan’s second biggest city. The building is 48 stories comprising 525 units, the smallest of which is 90 sq. meters. Prices start at ¥3 million per tsubo (3.3 sq. meters). In the first sales phase, apartments on floors 40 through 48 will be made available at prices ranging from ¥83.5 million to ¥415 million. The projection is that residents will be able to start moving in in August 2013.

The developer Sekisui House emphasizes that Owners Tower is very different from the “family-type” condos that tend to dominate the urban housing market, but in fact central Osaka will soon see a lot of new family-type tower condos going on sale in the coming months. Several buildings are now going up in Kita Ward offering a total of 400 units, and in Tennoji Ward, which is considered the heart of Osaka’s business district, about 260 units are under construction. The average prices are slightly less than ¥2 million per tsubo, or about 30 percent higher than prices in areas outside the city center.

Why are families moving to the center of the city? The main reason seems to be that while these condos are expensive, they are still much cheaper than they were, say, four years ago. Ever since the so-called Lehman shock of 2008, real estate in all the major cities has dropped in value as large companies unloaded properties to raise cash. Those developers that managed to stay in business cut back on new projects, but now they’re taking advantage of the lower land prices and building again.

Continue to read about the return of high-rise condos →

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