With the generous help of government stimulus, Japan officially came out of recession in the fourth quarter of 2014. Thus far, two of the main beneficiaries of Abenomics have been real estate and stock prices. This has made the rich richer, and indeed the well-to-do are re-investing their wealth in real estate.
Based on data reported by the Real Estate Information Network System (REINS), in the first quarter of 2015, there were 83 condo units priced over 100 million yen (about $800,000 at today’s exchange rate) sold in metropolitan Tokyo, an increase of over 33% from the same quarter in 2014.
Brillia Towers Meguro
The huge amount of buyer interest in the Brillia Towers Meguro project on the east side of Meguro station is a concrete example of this trend.
Tokyo Tatemono Co. Ltd., the developer, apparently received 18,000 requests for sales brochures from interested buyers when the model showroom opened in April, three times the number it had targeted.
The majority of units are expected to sell at “McMansion” prices, of over 100 million yen, but sales prices will start at 50 million yen and are expected to go as high as 400 million yen. The units will range in size from 30 square meters to 150 square meters. Thirty percent of people who expressed interest are owners of companies and executives, as well as doctors and lawyers.
The actual sales period will start in June, with interested applicants being chosen by lottery.
Location, Location, Location
What explains the high level of interest in the Brillia Towers Meguro project?
The project is part of a major 23,000 square meter re-development on the east-side of Meguro. The 80 billion yen development budget includes two residential towers and a 27-story office tower. The “North Residence” will consist of 40 stories and 2 basement-level floors. The “South Residence” will be 38-stories- high, with two basement-level floors. Of a total 940 residential units in the two towers, 661 units will be offered for sale.
The cityscape around Meguro consists of low-rise buildings, so when construction is completed (with a target date of December 2017), the Brillia Tower Meguro buildings are expected to become the area’s newest landmarks.
According to the developer, only fourteen buildings built in the last ten years in Tokyo have been located within a 1-minute walking distance from a Yamanote line station.
The Yamanote line is the loopline that encircles Tokyo, so proximity to Meguro station is another reason for the development’s popularity.
The Meguro station area may also grow in popularity among home buyers and investors in the coming years because of its proximity to Shinagawa, which is only three stops away on the Yamanote line. As we recently reported, Shinagawa is the nexus of a urban renewal project that is meant to make it into a hub for
international companies and the terminal station for a maglev train that will begin commercial service in 2027.
The Meguro area itself has always been considered a quiet and elite residential neighborhood. The Brillia Towers Meguro project is situated in the Hanabusayama area, which is named after Yoshishitsu Hanafusa, an ambassador in the Meiji era, who had his second residence there.
The developer designed the project based on the concept of “woods surrounding the station,” and the landscape will focus on accentuating the natural environment. It will feature a 5,300 square meter green area, where approximately 900 trees will be planted. Community space will include a luxurious lounge area, party rooms, a kids’ play area and a fitness center.
Views of Mt. Fuji
The site is located on a 30 meter hill with a mild downhill slope on the south, so units on the the upper floors promise spectacular views of Mount Fuji. Units on the opposite side of the development will supposedly offer unobstructed views of the entire city, including Roppongi, because there are no other high-rise buildings nearby.
The developer is also touting the project’s proximity to the Institute of Nature Study and the Meguro River, which is famous for its cherry blossoms.
It is not often that a project of this size comes online in such an exclusive neighborhood and with such proximity to public transport. So we’ll be keeping an eye out and reporting periodically on its progress.
Read the follow up to this post here: Profile of Tokyo Luxury Condo Buyers for a profile of the buyers and the actual sales prices.
Sources: Suumo Journal (Japanese), Tokyo Tatemono Co. Ltd. (Japanese), REINS
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