TOKYO – The lack of uber-luxury apartments in Tokyo, a city otherwise full of indulgent shopping choices, has long baffled foreign investors.
Price gains have moderated since then, but were still up 60 per cent in April and 48 per cent in May, according to the Real Estate Economic Institute. Later this year, Mori Building Co will finish its Azabudai Hills project near the central district of Roppongi. Traditionally, many of them avoided conspicuous properties, preferring quiet, standalone properties in Tokyo’s western districts.
The typical Japanese buyers of Mori’s Azabudai residences are company founders in their 40s and 50s, according to Kosei Ajima, the company’s head of residential business promotion. While some are paying in cash, the Bank of Japan’s prolonged easing stance means borrowing costs are minimal. The company’s high net-worth clients from Hong Kong, Singapore and Taiwan are seeking to diversify their assets and take shelter from growing geopolitical tensions around China, according to executive director Joey Yang.
Super-prime properties refer to even more exclusive residences catering to the ultra-rich and typically sell for over US$10 million.