TOKYO -- Nomura Real Estate Development and three other companies plan to construct two 65-story condominium buildings in the heart of Tokyo, set to be residential high-rises with the most floors in Japan.
The Nomura Real Estate Holdings unit will work with Tokyo Tatemono, Sumitomo Corp. and Shutoken Funen Kenchiku Kosha on the 235-meter towers containing a total of 3,200 condos. The project is seen costing 200 billion yen ($1.87 billion). Construction is to begin in fiscal 2019, with completion targeted for fiscal 2026. General contractor Maeda plans to take part in the construction phase.
The development will sit on about 5 hectares in Tokyo's Shinjuku Ward, in a neighborhood filled with aging residential and office buildings. The condos could bring more than 10,000 new residents into the area. The project's 3,200-unit size makes it one of the largest in Japan by units offered, beating out a 2,800-condo development by Orix and others in Tokyo's central Chuo Ward.
The condos have not yet been priced. But units in a 60-floor Mitsubishi Jisho Residence development under construction nearby have commonly sold in the 61 million yen range.
Developers are engaged in high-rise condo projects in downtown Tokyo and in waterfront areas ahead of the 2020 Olympics in the city. Typical high-rises range from 40 to 50 floors. A 59-story building in the city of Kawasaki, near Yokohama, boasts the most floors for a condo in Japan, the Real Estate Economic Institute said. But the Mitsubishi Jisho Residence project could steal that title once it is complete.
Japan's government in fiscal 2011 began loosening floor area ratio requirements and other regulations in certain overcrowded urban areas to spur redevelopment, enabling larger-scale projects. The condo development is in one such area surrounding Shinjuku Station.
Nomura Real Estate anticipates enough demand to fill the towers despite the project's large size. As dual-income households become more common, more homebuyers are looking for shorter commutes. Housing downtown and near train stations is seen attracting even higher demand following the Tokyo Olympics, indicating more high-rises to come.