Investment in Tokyo property is expected to accelerate in the second half of 2018, as Japanese and overseas property buyers take advantage of strong house price growth ahead of the government's consumption tax increase, expected in October 2019.
Data from the Real Estate Economic Institute predicts a positive outlook for the city’s residential markets through the rest of 2018. The supply of new condominiums is set to grow by 4.4 percent or more, year-on-year, in the greater Tokyo area, even as average sale prices approach historic peak levels.
Sale prices are expected to remain strong in Tokyo's central wards in particular, where major redevelopment projects and booming tech and creative industries are attracting talent from the wider area and overseas. This is increasing demand for all types of housing, including larger homes with amenities to support a healthy, family living.
Shinagawa is one of the areas experiencing strong price appreciation, driven by a rapidly growing population in need of convenient housing. Located close to one of Tokyo's major transport hubs, new condominium projects opening their doors in Shinagawa's affluent neighborhoods offer excellent opportunities to residents and investors alike.
Shinagawa Station area
One of Tokyo's busiest stations, Shinagawa Station is connected to all corners of the city and beyond via six rail lines, including the busy Yamanote Line, the Shinkansen bullet train, and direct connections to nearby Haneda and Narita Airports. The surrounding area has long been a favorite with developers, and regeneration is underway to capitalize on strong demand for apartments, offices, restaurants and retail premises close to the station.
The area around the Konan Exit to the east of the station has already undergone extensive redevelopment, including the rise of the gleaming skyscrapers of the Shinagawa Grand Commons and Intercity commercial complexes as well as the World City Towers condominiums.
The Takanawa Exit to the west is surrounded by hotels and shopping malls, including the Shinagawa Prince Hotel complex that is home to a cinema, bowling alley and aquarium. As part of Shinagawa Station's redevelopment, an elevated pedestrian deck will offer direct access to the Prince Hotel, which is being converted to offer business facilities including offices and meeting rooms by 2027.
Shirokane and Takanawa
Homes in prime residential districts close to Shinagawa Station are in high demand from Tokyo’s professionals and investors following the announcement that a new station will be opened nearby by 2024 to improve access to Haneda Airport.
Shirokane and Takanawa are two of Tokyo's plushest neighborhoods and are within walking distance of the stations to their west. Shirokane ('platinum' in Japanese) is the closer of the two to the new JR station and is known for its gourmet restaurants and traditional cafes, while Takanawa is closer to Shinagawa Station.
New high-rise developments in Shirokane include The Parkhouse Shirokane Nichome Tower, a collection of 172 luxury apartments by Mitsubishi Jisho Residence opening in August 2018. This 27-story residential tower has the latest seismic isolation systems to protect from earthquake damage and is in a remarkably green area, given that it is only a five-minute walk from Shirokanedai subway station.
Shinagawa Seaside area
South of Shinagawa Station, the Shinagawa Seaside area is another favorite with Tokyo’s commuters, combining scenic views over Tokyo Bay and access to the Shinagawa Seaside Forest, with convenient transport connections to the airport and the major commercial hubs of Shinagawa, Ebisu, Shibuya and Shinjuku.
Since Shinagawa Seaside Station opened in 2002, alongside amenities such as hotels and shopping malls, properties in the area have seen higher rental increases than most central Tokyo districts, making it a popular with landlords.
Prime Parks Shinagawa Seaside The Tower is a major residential project that will offer 817 residences in the natural surroundings of Shinagawa Seaside Forest. A collaboration between five developers, this collection of two-, three- and four-bedroom apartments also has a roof garden and children's play area and is scheduled to open in late March 2019.