Divided Tokyo by Tomoko Kubo

Author:Tomoko Kubo
Language: eng
Format: epub
ISBN: 9789811542022
Publisher: Springer Singapore

4.5.2 Developers’ Risk Hedging

Consequent to long-term economic malaise and suburbanization, the population of central Tokyo decreased in the early 1990s. In this context, government intervention was necessary to hedge the risks perceived by urban developers. Vancouver’s False Creek area is a good example to illustrate this (Cybriwsky et al. 1986; Ley 1996). Despite a wide rent gap, large-scale developers did not participate in redevelopment projects in the area. Instead, smaller developers used the opportunity to demonstrate their superior design, challenging spirit, and public-oriented mindset.

In Tokyo, the supply of compact condominiums started in a similar way. Small-sized developers began supplying units for owner occupation in the late 1990s (Yui 2000, 2003). The fact that 70% of these housing units were purchased by single women helped hedge risks for large developers (Yui 2000). In addition, large developers considered untried industrial sites such as Toyosu high-risk developments at the beginning of the twenty-first century (Koizumi et al. 2011). Therefore, Mitsui, a large developer, developed super high-rise condominiums that included a large shopping mall to increase the value of the development and mitigate risks. After Mitsui’s success, super high-rise developments arose throughout central Tokyo (Kubo 2014).

The results of this study indicate that major housing developers attempted to conform to the needs of small-sized households including single women, providing opportunities for homeownership in central Tokyo. The diversification of supply strategies by major housing suppliers transformed the housing market in central Tokyo, resulting in wide-ranging alternatives for owner-occupied housing that fully met homeowners’ needs, demands, and expectations.

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