Tokyo - Asia's High-tech Industrial Hub
Tokyo is a strategic centre to Japan’s economic activities with a globally affirmed status in its financial and economic sectors. For many years, Tokyo has been listed as a leading city in the world. UK’s Think Tank Z/Yen has previously placed Tokyo into the top 10 cities in its Global Financial Centres Index report. In the GFCI 25th 2019 issue, Tokyo was ranked 6th among the globe.
The city’s industrial innovation has consistently surpassed other cities. In 2018, Tokyo was placed 3rd on The Global Power City Index (GPCI), for 3 consecutive years. In the same year, it was ranked first in the World’s Innovative City Index for its advanced technology in robotics and 3D printing.
Second Largest GDP of the World
Strong economic activities continue to be the backbone of Tokyo’s GDP. The Federal Reserve System reported that Tokyo’s GDP surpassed New York’s in 2016 and 2017, taking 1st spot. A latest report by Oxford Economics states that Tokyo will continue to position at 2nd place for the next 15 years due to its leading economic status in Asia and internationally.
Tokyo Olympics 2020
Tokyo’s current economic development is supported by a number of factors. The 2020 Tokyo Summer Olympics has already initiated the government to drive redevelopment projects in the city. Projects including competition facilities, redevelopment of the Tsukiji Market into a food market and new entertainment facilities will transform the city outlook besides stimulating its tourism revenue.
Furthermore, in 2018, Japan approved its plan to grant casino licenses. Tokyo will be hosting one of the first casinos in the country in the near future. As such, with the Olympics paired with the gambling businesses, regional economies are foreseen to increase from revenue and job creations.
Property Prices show steady growth
Housing prices in Tokyo have grown steadily since 2013 after its announcement to host the 2020 Summer Olympics. According to Japanese research firm Real Estate Economic Institute, the average pricing of a 2 to 3-bedroom unit in District 23 ranges around 59.94 million yen or 873,000 yen per square meter. In 2018, prices averaged at 71.42 million yen or 1.11 million yen. 4 years later, average pricing and price per square meter have increased 19.2% and 27.6% respectively.
Japanese financial expert Yousuke Tamagawa points out in his new book, Predicting Japan’s Future, that in 2018, a 700 square feet unit with 2 to 3 bedrooms valued approximately 70 million yen in 2018, “will increase to about 90 million yen by 2025.” Many predict that the property market in Tokyo will continue growth under a welcoming economic environment.