Tokyo: Akari has become Japan’s second-most expensive residential area after Osaka.
But for many residents, it’s an unwelcome change.
The trend has taken a toll on the property industry and the country’s economic development.
In the past year, prices have risen by an average of nearly 30 percent.
A key factor behind the price hike has been a shortage of homes in the city, said Yoshikazu Morimoto, head of Tokyo-based property consultancy Akari Property.
A rental shortage in the country is already in its second year.
The number of apartments has declined by about 10 percent, and the number of new units has decreased by about 30 percent, he said.
This has affected the rental market, with more than half of all apartments sold to foreign buyers.
A large part of the problem is the lack of foreign investment in the area.
The country has been struggling to attract foreign capital since the global financial crisis, with the unemployment rate at more than 10 percent.
In 2017, foreign investors bought $1.9 trillion worth of residential real estate in Japan, but the government only bought about $7.5 trillion worth in the same period.
Japan’s financial crisis also saw the country hit a new record high in housing prices, at around $2,600 per square foot in 2020.
“We’re losing a lot of ground in the market,” said Morimoto.
“There are too many apartments.
I see no sign of any new apartments coming on the market.”
A housing shortage is a problem that can be solved with more housing.
A housing ministry report from September suggested a combination of housing policies such as allowing new housing construction to go ahead and a new housing stock could solve the housing shortage.
The government also recently announced an expansion of government-subsidized housing, which would provide more homes to people who qualify for it.
The new government-backed housing plan would be funded by a $1 billion fund to purchase new housing.
In Tokyo alone, more than 7 million apartments would be built in 2020, and up to 2.5 million more will be built by 2021.
The current housing crisis has led to a significant decline in the number and size of apartment buildings in Tokyo.
While many apartment buildings are still in the process of being constructed, they are currently being built in a number of districts.
In the first half of 2019, the number in the capital fell to around 8,000, according to the Tokyo Metropolitan Government.
In February 2020, the government announced that more than 1,600 apartment buildings would be constructed in the central Tokyo district of Akasaki, with a total of nearly 9,000 units planned by 2021, with further construction planned for Akasaka.
But as Akasakas apartments go up in value, there are also more empty apartments.
“When we started this project, there were just about 50 apartment buildings and now there are a lot more,” said Akasaki, a 30-year-old resident of Akasato.
“I think this is an issue that needs to be solved,” he said, referring to the shortage of housing in Tokyo and the ongoing construction of apartments.