Tokyo, the bustling capital of Japan, is experiencing a significant population decline but an influx of wealthy Asians. The city’s high-rise living spaces are becoming increasingly expensive, despite a shortage of housing. Thomas Hasler, head of Sika, a Swiss construction chemicals group, showcases Japanese urban planning from the 34th floor of the Mori JP Tower in Tokyo. Hasler explains to analysts how his company benefits from the rise of Japanese real estate developers.
Japan has over 200 buildings taller than 150 meters, with 53 exceeding 187 meters. The Mori JP Tower is part of a major project called “Azabudai Hills” by Mori, one of Japan’s largest real estate giants. The tower houses 20,000 employees and 91 luxury apartments and showcases Sika’s concrete mixes and composite solutions.
As Tokyo continues to attract workers and seniors, high-rise living with amenities like schools, hospitals, and restaurants becomes more appealing. Foreign investors are also pouring billions into Japan’s real estate market, especially in Tokyo, considered one of the safest investment destinations in Asia. However, this real estate boom has led to record prices for condominiums in central Tokyo.
Despite the high prices putting a strain on average Japanese earners, the boom is expected to continue in the coming years due to factors such as rising construction costs and increasing demand from foreigners.
Luxury apartments play a crucial role in attracting global talent and maintaining Japan’s competitiveness. Sika stands to benefit from ongoing development projects in Japan and further solidifies its presence in the market.