Kajima Corp., Mitsui Fudosan Co., Mitsubishi Estate Co., and two other Japanese companies will spend about 67.5 billion yen ($687 million) to develop a site near the 2020 Olympic Games venues.
The estimated investment includes costs to build a 53-story apartment tower and two other buildings in Kachidoki, according to Yasuhiko Haga, a spokesman at Kajima. The 1,420-unit apartment building located less than 2 kilometers (1.2 miles) away form Ginza’s shopping district will be Japan’s biggest, according to a joint statement released today.
Tokyo’s winning bid to host the Olympic Games is helping accelerate the country’s property market that has already shown showing signs of a rebound. The number of condominiums for sale in Tokyo and surrounding areas rose 53 percent from a year earlier to 4,145 units in August, the biggest same-month increase since 1996, according to the Real Estate Economic Research Institute.
Apartment prices in the Tokyo Bay area near the competition venues may increase as much as 20 percent, according to an estimate by Sanyu Appraisal Corp., a property appraisal company.
Across the site of the Kachidoki development is an area called Harumi where Tokyo is planning for its biggest housing complex in 42 years to lodge athletes.
Mitsubishi Estate Co. and Nomura Real Estate Holdings Inc. are the other two developers to jointly develop the project, according to the statement. The prices for the apartment tower, which will be completed in December 2016, have not been decided, it said. The other two buildings will have shops and office space, Kajima’s Haga said.