Latest trend is seeing luxury automotive makers move into hotel property brand space
In the heart of Tokyo, an extraordinary trend is reshaping the landscape of the real estate market. The ultra-luxury residential sector is achieving unprecedented sales, setting new records in pricing that defy conventional market norms. Tokyo has emerged as a global hub for opulent living, drawing the attention of discerning buyers worldwide as the city’s skyline undergoes a transformative evolution.
Fuelled by a convergence of economic factors, regional dynamics, and innovative architectural endeavours, Tokyo’s ultra-luxury real estate market is experiencing a renaissance. While the demand for ultra-luxury units likely existed but remained dormant due to limited supply, the recent influx of these units into the market has awakened and invigorated the segment. Tokyo is metamorphosing into an exclusive playground for the elite, where luxury residences transcend mere physical structures, intertwining seamlessly with Tokyo’s rich history, cutting-edge technology, and the perfect balance of tradition and modernity.
While the Aman Residences set branded residences’ pricing records, C9 Hotelworks is seeing not only hotel brands active in the space but luxury automotive brands, as well. There is a robust underlying current of strong developer and consumer demand for brands, so we also expect fashion brands to enter the market. The Aman phenom has spurred a second project for their Janu brand with a hotel and residences recently announced.
The influx of foreign investors has played a pivotal role in driving this demand, enticed by Tokyo’s stability, economic growth, and the promise of substantial returns on investment. Moreover, Tokyo’s luxury residences owe their success to visionary architects and developers who have pushed boundaries, creating masterpieces that redefine luxury living. Notable developments, such as Mori Building’s Azabudai Hills and Mitsui Fudosan’s Mita Garden Hills, showcase the city’s commitment to unparalleled quality and potential.
As Tokyo continues its transformation, marked by large-scale redevelopment projects in areas like Toranomon and Azabudai, the ultra-luxury residential market is poised for further evolution. The city’s stability, combined with its status as both an ultra-luxury residential hub and a sought-after luxury travel destination, fosters the increasing demand for high-end residential units. All these unfolding events and developments collectively sketch a promising outlook for the future of Tokyo’s ultra-luxury residential market.
To download and read C9 Hotelworks Toyko Ultra-Luxury Property Market Review 2023, click here.
About Bill Barnett
Bill Barnett — a globally recognised hospitality, tourism, and real estate advisor — is the founder and managing director of Asia-based C9 Hotelworks and esteemed member of the PropertyGuru Asia Property Awards (Greater Niseko) Judging Panel.
In addition to being a leading consultant, he is a frequent speaker at industry events and conferences. With over 30 years’ experience in the Asia Pacific region, he has an extensive background in hotel operations, development, and asset management. His past employment highlights include Senior Corporate roles at international hotel chains and publically listed companies. Bill is considered to be one of the foremost industry experts in the hotel residences sector. To date, Bill is the author of four books on travel, property, and hospitality under the titles of Slave to the Bean, Collective Swag, It Might Get Weird, and Last Call.
For more information, email: [email protected].
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