A building spree, to put it mildly
Around 45 new skyscrapers are slated to be added to Tokyo by 2020 in time for the Olympic Games.
New high-rise space in the Japanese capital will increase by almost 50 percent over the coming three years from the previous three, reported Toyokazu Imazeki, chief analyst at office leasing and consulting firm Sanko Estate Co Ltd.
The buildings were launched in a period marking the beginning stages of Prime Minister Shinzo Abe’s expansionary policies, dubbed Abenomics. “This marks the timing for completion of buildings planned from about 2013 when developers were expecting the economy to expand,” Imazeki told Bloomberg.
Tokyo’s three central wards will be home to 1.8 million square meters in new leaseable office space with floors of over 661 square-meters, up from 1.2 million square metres in the three years to 2017, Imazeki reported.
The central Chiyoda, Chuo and Minato wards will amass 75 percent of new constructions until 2018, compared with 61 percent between 2011 and 2015, Bloomberg reported, citing data from Mori Building Co Ltd.
“Most of the buildings are centered on the three prime areas in central Tokyo,” said Takashi Ishizawa, a senior researcher at Mizuho Securities. “This could heat up competition for tenants in other areas of the city” as office occupiers are drawn to the premier locations, he said.
The Summer Olympics are set to be held in Japan for the first time since 1964.