Penthouse at Westbank’s The Kita sells for USD 50 million
Updated: Sep 13
Bloomberg reported on July 7th, 2023 that Westbank confirmed the sale of the penthouse unit in their Tokyo development The Kita, which sold for US $50 million (approx. JPY 7.3 billion at time of writing).
The Kita exterior courtesy of Westbank
Westbank’s The Kita penthouse sold in July, 2023 for US$50 million (approx. JPY 7.3 billion as of this summary’s publishing)
The Bloomberg article also reported that one of the penthouse units in the Aman Residences, Tokyo atop Azabudai Hills sold for JPY 20 billion.
Market agents say increased demand for Japan ultra-luxury property is due to the weak Japanese yen and increasing geopolitical tensions, specifically in China and Hong Kong.
Bloomberg also wrote that Savills had confirmed the sale of a penthouse unit in the Aman Residences, Tokyo sold for JPY 20 billion. These units occupy the top 11 floors of Mori Building’s Azabudai Hills main tower.
Aman Residences, Tokyo common area courtesy of Aman
According to industry insiders, one of the drivers of this change is the rise of young tech entrepreneurs who have taken their companies public in recent years.
The typical Japanese buyer of Azabu residences, for example, are company founders in their forties and fifties, according to Yasuyo Yasushima, Head of Business Promotion in Mori Building's Residential Business Division.
While some buyers pay in cash, the prolonged easing stance of the Bank of Japan keeps borrowing costs minimal.
According to Bloomberg, real estate agents also point to increased demand from overseas buyers who see Japan as a stable and attractive location for second homes.
Tokyo's luxury condominiums are considered more affordable than similar properties in other global cities. According to Knight Frank's annual report, individuals with a budget of $1 million can acquire twice as much space in prime locations in Tokyo as in New York and three times as much as in Hong Kong.
Courtesy of Knight Frank. Link to full report at bottom of article.
After years of deflation and sluggish economic growth, inflation in Japan is beginning to pick up, driven by rising labor and material costs, providing a tailwind for the real estate market.
The recent increase in asset prices indicates that the value of condominiums is either being maintained or beginning to rise after they are sold.
These trends signify a significant shift in the way buyers view real estate. More buyers are considering real estate as a practical and potentially profitable investment and, according to some agents, real estate in Japan is starting to finally be recognized as a commodity.
Read the full Bloomberg article here. (Japanese version; subscription may be required.)
Knight Frank’s The Wealth Report (April, 2023)