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The Birth of "Roppongi Hills 2" Brings New Opportunities to the Roppongi Apartment Market in Minato Ward

Roppongi Hills2

Source:Minato-ku "Decision on the District Plan for Roppongi 5-chome West Area"

A New Landmark in Tokyo's Minato Ward: The Full Scope of the Redevelopment Plan

Roppongi is known as one of Tokyo's most luxurious and prestigious areas, and living here is considered a status symbol. This brand power increases the value of investment properties, with low risks of land price decline and the potential for long-term asset value retention. In such an attractive area, a large-scale redevelopment project that promises further development is currently underway.

The project is the redevelopment of the "Roppongi 5-chome West Area" (Minato Ward, Tokyo), also known as the "Second Roppongi Hills." Jointly developed by Mori Building and Sumitomo Realty & Development, this project is one of Japan's largest redevelopment ventures, with a total project cost of 700 billion yen. It covers an expansive area of approximately 10.3 hectares surrounded by Gaien-Higashi Dori, Imoarai-zaka, and Torii-zaka. The plan includes skyscrapers, offices, apartments, commercial facilities, cultural institutions, and parks, with a total floor area of about 1.08 million square meters. Construction is set to begin in fiscal 2025, with completion aimed for fiscal 2030.

Roppongi Hills2

Roppongi Hills Redevelopment Area Phase 2

Enhancing the Value of Condominiums through Urban Infrastructure Development around Roppongi Station

The redevelopment plan aims to address several issues in the area around Roppongi Station and Roppongi Intersection, enhancing the urban infrastructure, including transportation facilities, to improve and strengthen the area's function as a transportation hub.

  • Lack of adequate waiting spaces
  • Stairways and escalators are the only connections between the Hibiya Line and the Oedo Line (not barrier-free)
  • Bus and taxi stops are scattered, reducing transfer convenience around the station

Roppongi's New Skyscrapers: Future Homes and Apartments

The redevelopment is divided into five districts (A to E), with the highlights being two skyscrapers: a 327-meter tower in District A and a 288-meter tower in District B. The District A skyscraper will have 66 floors above ground and 8 below, featuring a mix of commercial spaces, offices, hotels, stores, cultural facilities, and an observation deck. The District B skyscraper will have 70 floors above ground and 5 below, mainly offering approximately 800 urban-style residential units for foreigners. Additionally, District C will host a school, District D will include a community center and accommodation facilities, and District E will have residential units, stores, and parking spaces.

An Urban Plan to Attract International Business and Tourism

The Second Roppongi Hills aims to enhance the station area's facilities as an international business hub and attract foreign tourists by expanding tourist facilities. While existing facilities like Tokyo Midtown and Roppongi Hills already feature event halls, conference rooms, and international-standard accommodations, this redevelopment project will introduce Roppongi's largest event hall (about 2,000 square meters) capable of hosting major international conferences, along with medium and small halls for breakout sessions and waiting rooms during large-scale events.

International-Standard Residential Facilities: The Second Roppongi Hills Apartments

The residential units in the District B skyscraper will cater to the housing needs of highly skilled foreign professionals, with an average unit size of about 150 square meters. They will feature 24-hour bilingual concierge services, doormen, fitness gyms, and other amenities, providing a comfortable living environment for a diverse range of residents, including foreigners. Recently, the highest price for a luxury residence in the newly completed Azabudai Hills was reported to be 20 billion yen, and the prices in the Second Roppongi Hills are expected to exceed that.

As of March 2024, the tallest residential tower in Japan is the "Toranomon Hills Residence" in Minato Ward, standing at about 220 meters with 54 floors. However, the Second Roppongi Hills residential tower in District B is set to surpass this height, reaching 288 meters, making it the tallest residential tower in Japan.

So, how significant is this Second Roppongi Hills redevelopment? Let's compare it to previous developments in Minato Ward, such as Roppongi Hills and Azabudai Hills.

Scale of Redevelopment Projects by Development Area

Development Name Construction Area Total Floor Area
Roppongi Hills About 12ha About 793,165㎡
Azabudai Hills About 8.1ha About 861,700㎡
Second Roppongi Hills About 10.3ha About 1.08 million㎡

Comparison of Skyscraper Heights

Development Name Skyscraper Name Height
Roppongi Hills Roppongi Hills Mori Tower About 238m
(54 floors above ground, 6 floors below)
Azabudai Hills Azabudai Hills Mori JP Tower About 330m
(64 floors above ground, 5 floors below)
Second Roppongi Hills Undecided About 327m
(66 floors above ground, 8 floors below)

The Appeal of the Roppongi Area and the Future of the Apartment(Condominium) Market

Roppongi Apartment

Minato Ward, where Roppongi is located, is home to many foreign companies and embassies, making it a favored area for affluent foreigners. The area is also well-equipped with international schools and medical facilities that cater to foreign languages, offering strong lifestyle support. Close to other prestigious residential areas such as Akasaka, Aoyama, Azabu, Shirokane, Shirokanedai, and Takanawa, the entire region is highly regarded as an attractive place to live. As a result, real estate in Roppongi is highly sought after and prestigious, attracting high-class residents, which can lead to high rental income. Luxury condominiums and office buildings, in particular, can provide stable revenue. Additionally, the weak yen makes it an attractive investment or second home purchase for foreign investors. With the completion of the Second Roppongi Hills, the appeal of this area will increase even further, significantly enhancing the value of condominiums in the Roppongi area. Roppongi, located in the heart of Tokyo, offers convenient access and a luxurious living environment, making it an ideal investment destination for foreign investors.

Jul 12, 2024

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