Visitors to apartment showrooms in the Tokyo Bay area where the Olympic Village will be built doubled after the city was selected to host the 2020 Olympic Games, according to Japan’s biggest developer by market value.
The number of groups who visited Mitsubishi Estate Co.’s showroom for the 49-story Parkhouse Harumi Towers doubled to 60 on Sept. 8, when the decision was made public, from about an average 30 per day, said Masayuki Watanabe, a Tokyo-based spokesman. The units are priced from 49.8 million yen ($496,000) to 83.9 million yen, according to its website.
Tokyo’s winning bid to host the Olympic Games is a boost to a real estate market that’s showing signs of a rebound amid efforts by Prime Minister Shinzo Abe to revive the world’s third-largest economy. The capital is planning its biggest housing complex in 42 years to lodge athletes in an area called Harumi, which will occupy a 44-hectare (109-acre) site.
“The phone just kept ringing,” Watanabe said in a telephone interview yesterday. “We’ve got e-mail inquires from as early as 6 a.m. on Sunday morning.”
Parkhouse Harumi Towers, developed by Mitsubishi Estate and Kajima Corp., consists of 861 units and is scheduled to be completed by April 2016, according to the company’s website.
Shares of Mitsubishi Estate closed little changed at 2,880 yen in Tokyo trading.
A few blocks away from the Parkhouse Harumi Towers stands the construction site of Deux Tours, a twin 52-story apartment development owned by Sumitomo Realty & Development Co., Japan’s third-biggest developer.
The company, which plans to introduce the model room for the project in November may consider putting apartments up for sale earlier to meet rising demand, said Kazuyoshi Tanaka, a Tokyo-based spokesman of Sumitomo Realty.
Japan’s housing starts rose for a 11th month in July, the longest streak since February 1994, according to the land ministry. The number of condominiums for sale in Tokyo and surrounding areas rose 32 percent to 5,306 units in July, the highest same-month level since 2007, according to the Real Estate Economic Research Institute.
The Harumi area, which is located about 2 kilometers (1.2 miles) south of Ginza, central Tokyo’s shopping district, will undergo a transformation after the introduction of condominiums including the Parkhouse Harumi Towers as they will bring more residents to the neighborhood, said Tadashi Matsuda, a researcher at the institute in Tokyo.
“The potential of this area is rising,” Matsuda said. “Naturally, that means prices will increase. With the Olympics, the trend for price gains will become clearer.”