The cosmopolitan Nishiazabu and Roppongi areas are representative of Tokyo's Minato Ward. The Nishiazabu 3-chome Northeast Urban Area Redevelopment Project is underway to create a new urban landscape and value in this area. This article provides an overview of the project and its impact on the real estate market, which is the focus of INA&Associates' attention. Outline of the Project
The project is a Type 1 Urban Redevelopment Project being undertaken in an area of approximately 1.6 ha adjacent to Roppongi Hills, approximately 300 m west of Roppongi Station on the Tokyo Metro Hibiya Line and Toei Oedo Line. The project operator is Nishiazabu 3-chome Northeast Area Urban Redevelopment Association, with Nomura Real Estate Development Co.
The current area faces multiple urban issues, including the underdevelopment of Auxiliary Route 10 (TV Asahi Dori), which is designated as an emergency transportation road, the existence of buildings with insufficient earthquake resistance, and a lack of open spaces such as greenery and parks.
This redevelopment project aims to create a green urban complex in harmony with the surrounding environment, centering on a super high-rise complex with 54 stories above ground and 4 below, approximately 200 meters high. The total project cost is announced to be approximately 80.4 billion yen.
The skyscraper (Block A), which will be the core of the project, will adopt a seismic damping structure and the following functions will be introduced
The three temples and shrines existing on the site, Chokoji Temple, Myozenji Temple, and Sakurada Shrine, will also be relocated to carry on the historical and cultural assets of the area.
The project focuses not only on building improvements, but also on qualitative improvements to the urban environment:
Currently (as of May 2025), demolition of existing buildings is in progress. Demolition of the Roppongi Yasuda Building, Hokushin Building, and other buildings is underway, including asbestos removal, assembly of external scaffolding, and investigation of buried cultural properties.
Construction of the main building is scheduled to begin in September 2024 and be completed in April 2028, and the association is expected to be dissolved by FY2029.
I am focusing on the following points as the impact of this redevelopment project on the real estate market.
The redevelopment project is expected to improve the urban functions of the entire district, which will lead to an increase in real estate values in the surrounding area. In particular, the Roppongi and Nishi Azabu areas already have high asset values, and this project is expected to further increase those values. 2.
The approximately 500 residential units to be supplied by the project are expected to be luxury residences for the ultra-affluent class, given the location and the level of facilities. The fact that a luxury hotel will be attached to the property will also be an attractive factor for the international affluent class.
The creation of new office and commercial space in the cosmopolitan Nishiazabu and Roppongi areas is expected to attract global companies and highly sensitive retailers. This will further enhance the local business environment and stimulate economic activity.
By replacing existing buildings that had problems with earthquake resistance with buildings that have the latest seismic damping structures, open spaces, and disaster prevention equipment, the disaster prevention performance of the entire district will be greatly enhanced. This is an important factor that will also contribute to the long-term stabilization of real estate values.
Considering this project from INA&Associates' perspective, we believe the following points are important
We appreciate the fact that the plan respects the history and culture of the local community, including the relocation of temples and shrines. This is because sustainable urban development requires the inheritance of not only economic values but also cultural and social values. 2.
The introduction of international-standard hotels, offices, and commercial facilities has the potential to become places where people from diverse backgrounds can gather and create new value. The exchange of diverse human capital is the source of innovation.
This is a long-term project, lasting approximately 10 years from planning to completion. Our approach to enhancing the value of the city from a long-term perspective, rather than short-term profit, is in line with our goal of "creating sustainable corporate value.
The Nishiazabu 3-chome Northeast Area Type 1 Urban Redevelopment Project is not simply a building renewal project, but a comprehensive effort to improve the quality of the city. A district with its own challenges is being transformed into an attractive place that combines cutting-edge urban functions with local history and culture.
For those of us in the real estate industry, there are many lessons to be learned from projects like this. We believe that true urban renewal is not the pursuit of short-term profit, but rather the enhancement of the value of an area and the quality of people's lives.
How will the Nishiazabu and Roppongi area change after 2028, when this redevelopment project will be completed? We will continue to pay close attention to these changes and apply the knowledge we gain from them to our own business activities.