Condo towers 20 stories or higher are going up or will in central Nagoya this year as dwindling land prices driven by the 2008 financial collapse revitalize the depressed market.
On Jan. 27, Shimizu Corp. announced it would build a 29-story condo complex next to Higashi Betsuin Station on the Meijyo subway line and open units for sale from May.
“It is impossible to set the same high price as that in the peak of 2006, when developers enjoyed brisk sales, but the sales climate this year is brighter than last year. The highest-priced unit will be around ¥100 million,” said Yoshinori Motoyama, an investment and development project manager at Shimizu.
In the past one or two years, there were few new condo skyscrapers available in the market. But this year, condo towers are being planned by many developers, including Sumitomo Realty & Development Co. and Nomura Real Estate Development Co. The new buildings will stand next to each other near Hisaya Odori Station in the same area — the Izumi district in Higashi Ward. In addition, new condo towers will open in the Kanayama, Higashi Betsuin and Ikeshita districts.
“It is widely expected that the economy will recovery this year. These moves might be just a coincidence, but our company has paid attention to the market trend in setting a schedule,” said an official at one developer.
Why are condo towers hitting the market this year?
“Things like a speculative boom caused land prices in the central part of the city to skyrocket, but it declined after the Lehman Brother’s shock. Demand for condos in the center of the city is always high, and now people are starting to come back to the heart of the city,” a business owner said.
According to Shinto Tsushin Co. in Nagoya, which provides information on condominium trends, “Building high-rise condos is costly, and now that land prices are finally dropping and the economy is picking up, conditions for launching these construction projects are ripe.”
This section, appearing Saturdays, features topics and issues from the Chubu region covered by the local daily Chunichi Shimbun. The original article was published Jan. 28.
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