Tokyo’s population is shrinking, but the city continues to attract more and more people, especially wealthy Asians. The demand for housing in high-rise buildings is increasing, despite a shortage of housing. Thomas Hassler, head of Swiss construction chemicals group Sika, showcases Japanese urban planning from the 34th floor of Tokyo’s Mori JP Tower, one of Japan’s newest and tallest skyscrapers. Hassler explains to analysts how his company is benefiting from the rise of Japanese real estate investors.
The Mori JP Tower is part of a major project called “Azabudai Hills” by Japanese real estate giant Mori. The tower has 20,000 employees and 91 luxury apartments and highlights Sika’s concrete mixes and composite solutions. Ten more high-rises are under construction or planned, along with many “towers,” serving Tokyo’s growing population.
As Tokyo continues to attract workers and seniors, living in high-rise buildings with amenities such as schools, hospitals, and restaurants is becoming increasingly attractive. Foreign investors are also pouring billions into the Japanese real estate market, especially Tokyo, which is considered one of the safest investment destinations in Asia. However, this real estate boom has led to record prices for condominiums in central Tokyo, putting pressure on average Japanese workers.
Despite high prices, the boom is expected to continue in the coming years due to factors such as rising construction costs, increased foreign demand and Tokyo’s attractiveness. Luxury apartments play a key role in attracting global talent and keeping Japan competitive.
Sika will benefit from ongoing development projects in Japan further strengthen its presence in the market as it showcases its products through these projects.