5,632 homes across a large waterfront district
The Tokyo Metropolitan Government updated its information on the Harumi 5-chome West First-Class Urban Redevelopment Project on August 7. The approximately 18-hectare site in Chuo Ward was used as the athletes' village for the Tokyo 2020 Games before being converted into a permanent residential district. It includes 21 mid- and high-rise slab buildings, two towers approximately 180 metres tall with 50 floors above ground, and one commercial building. Total residential supply is 5,632 units, consisting of 4,145 for-sale homes and 1,487 rental units. The stated project cost is approximately ¥33.6 billion excluding construction expenditure by designated developers.
Large supply changes the waterfront market structure
It is unusual for thousands of homes to be introduced within one relatively central Tokyo district. Harumi therefore affects not only new-home supply but also resale listings, rental competition, retail demand and transport patterns. Because many units within the same neighbourhood are directly comparable, differences in floor, view, orientation, building and layout can be reflected rapidly in market pricing. Sellers may face direct competition from similar units in the same development, while rental conditions can also vary depending on how many apartments enter the leasing market at the same time.
Investors need to balance redevelopment benefits and supply risk
For overseas buyers, Harumi offers a relatively easy-to-understand Tokyo waterfront location near central business and retail districts. Yet large master-planned communities require investors to evaluate supply as well as redevelopment benefits. New public spaces and commercial facilities can enhance area appeal, but a large stock of similar apartments can increase competition at resale. Investors should therefore monitor listings, rental inventory, building fees, reserve-fund contributions and transport conditions in addition to broader expectations of long-term waterfront redevelopment.