Branded residences gaining traction in Japan

They are generally developed in areas that are considered tourist destinations. 

The concept of branded residences are slowly gaining traction in Japan despite being in its nascent stages. 

According to Savills, the highly anticipated opening of Aman Residences Tokyo next year and many other mixed-use developments in the near future that are considered suitable to accommodate ultra-luxury residences have garnered a large amount of interest. Currently, a few examples can be found in Niseko and Kyoto. 

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For instance, LOFT Niseko, affiliated with YOO, opened in 2014 in Niseko as the first YOO project in Japan, and features four loft-style residential units. Additionally, Park Hyatt Niseko Hanazono Residences was completed in 2019 and comprises 113 residential units on a 24,000 sq m site in Niseko. Market rumours suggest that a studio of about 70 sq m was priced for about JPY150 million while a three-bedroom of about 150 sq m was priced for about JPY550 million. 

Furthermore, Aman Niseko is a wellness resort slated for opening in 2023, which will feature 31 detached residential units along with 30 hotel guestrooms. The property also features multiple restaurants, a spa, and facilities where residents can engage in nature-related activities. 

On a separate note, overseas investors from regions such as Hong Kong, China, Australia, and Singapore have reportedly been especially active in acquiring properties in Hokkaido. They have remained active during the pandemic with the expectation of tourists returning after the pandemic. 

One example of a branded-residence development outside of Niseko is Four Seasons Kyoto, an exclusive property located in Higashiyama, Kyoto. The property opened in October 2016 and features 57 luxury residential units along with 123 hotel units, a spa, a gym, a pool, as well as a 10,000 sq m Japanese garden. As of March 2022, some units in this project appear to be listed for close to JPY30 million per tsubo.

As indicated in the examples above, branded residences in Japan were generally developed in areas that are considered tourist destinations. This is not surprising considering that potential buyers of these properties would already own primary homes, and these branded residences were mainly purchased as a place to spend their leisure time. 

However, the aforementioned Aman Residences Tokyo is likely to be a game changer as it will be the first urban branded residence property in the heart of Tokyo, and the project is rumoured to be getting a lot of attention. The success of Aman Residences Tokyo should spark further interest, leading to more developments of branded residences in central Tokyo.