Approximately 1,100 meters southwest of Shinjuku Station, near Keio Line Hatsudai Station, one of Tokyo's largest redevelopment projects is underway in Nishi-Shinjuku 3-chome. This is the "Nishi-Shinjuku 3-chome West District Class 1 Urban Redevelopment Project," centered on twin towers—North Tower at 63 floors and approximately 229m, South Tower at 62 floors and approximately 228m—comprising a large-scale mixed-use complex with approximately 3,200 total units and a total floor area of approximately 383,578 m². The schedule has been revised due to the industry-wide challenge of rising construction costs, making it crucial for real estate investors and area residents and workers to stay current on the latest developments.
Project Overview and Background
The project area spans approximately 4.6 hectares across parts of Nishi-Shinjuku 2-chome, 3-chome, and 4-chome in Shinjuku Ward. The target zone is densely packed with aging buildings constructed before 1981, and fire prevention issues have been flagged for many years. The project is being developed with the goal of fundamentally improving this urban area and creating a "mixed-use hub for vitality and exchange."
The implementer is the "Nishi-Shinjuku 3-chome West District Urban Redevelopment Association," which received Tokyo Metropolitan Government approval on February 1, 2023. Major developers and public institutions including Nomura Real Estate, Sumitomo Corporation, Tokyo Tatemono, and the Metropolitan Non-Combustible Construction Corporation are participating as member developers, with Maeda Construction Company selected as the designated business contractor. The project cost is approximately ¥238.7 billion (currently under review), positioning it as a large-scale project combining private enterprise and government collaboration.
Building and Facility Plan Details
Block A-1 (Twin Towers)
The A-1 block, the core of this project, will feature two side-by-side ultra-high-rise towers. The North Tower stands 63 floors above ground, 4 below, with 2 penthouse levels, at approximately 229.4m with a total floor area of approximately 183,782 m², while the South Tower stands 62 floors above ground, 4 below, with 2 penthouse levels, at approximately 228.4m with a total floor area of approximately 194,987 m²—a magnificent scale. The A-1 block has approximately 3,200 total units, a site area of approximately 29,630 m², and a combined total floor area for both towers of approximately 378,769 m². The program centers on residential use, with a planned mix of shops, offices, daily life support facilities, nurseries, and parking. The emergence of twin towers of this scale in the Nishi-Shinjuku area will fundamentally transform the city's skyline.
Blocks A-2 and A-3 (Low-Rise Mixed-Use Buildings)
Building A-2 (9 stories above ground, 1 below) and Building A-3 (9 stories above ground), developed in tandem with the towers, incorporate residences and shops, with Building A-3 also including a neighborhood community hall. The design philosophy reflects continuity with the local community while rebuilding the living foundation for existing residents.
Public Contribution (Pedestrian Network and Disaster Prevention)
The project's significance beyond mere private development is also evident in its substantial public contributions. Plans include developing an approximately 4,500 m² disaster prevention plaza, strengthening the safe and comfortable pedestrian network, and improving roads and temporary shelter facilities. It is also aligned with the "Nishi-Shinjuku Urban Lobby Concept" promoted by the Tokyo Metropolitan Government and Shinjuku Ward, as well as the Nishi-Shinjuku Redevelopment Guidelines formulated in February 2025, and is designed to contribute to the overall value enhancement of the area. The Day Nishi-Shinjuku Becomes a "Walkable City" | The 2040 Vision Shown by the Urban Lobby Concept and Redevelopment Guidelines
Schedule and Latest Developments
Why Construction Start Was Delayed to Fiscal Year 2028
According to the latest outlook as of January 2026, construction is expected to be delayed two years from the originally planned fiscal year 2026 to fiscal year 2028. The main reason is that soaring construction material prices and labor costs have forced a review of the total project cost. This is a structural challenge facing large-scale redevelopment projects across Japan—not just in Nishi-Shinjuku—and this project is no exception.
The schedule changes are as follows:
| Step | Original Plan | Latest Outlook (as of January 2026) |
|---|---|---|
| Start of existing building demolition | December 2025 | Fiscal year 2027 |
| Approval of rights conversion plan | Fiscal year 2026 | Fiscal year 2026 (unchanged) |
| Construction start | Fiscal year 2026 | Fiscal year 2028 |
| Project completion (handover) | Fiscal years 2032–2035 | Fiscal year 2035 |
While construction and completion delays may appear as negative news to investors, what matters is the high degree of certainty indicated by "urban planning decision finalized and association established." The rights conversion plan approval remains on schedule for fiscal year 2026, and the risk of the project being abandoned is considered extremely low. Even with the delayed construction start, the framework of the project toward the fiscal year 2035 completion is being maintained.
Impact on Local Real Estate Market
Trends in the Nishi-Shinjuku Area as Seen in the 2026 Published Land Prices
In the 2026 published land prices (Reiwa 8), Shinjuku Ward recorded a strong increase with an average land price of ¥4.33 million/m² (up 12.88% year-on-year). The average commercial land price was ¥6.15 million/m² (up 13.77% year-on-year), and the average residential land price was ¥1.13 million/m² (up 11.21% year-on-year), both far exceeding the national average growth rate. The Nishi-Shinjuku area has continuously priced in redevelopment potential, and the structure is such that additional upward pressure will be added as construction progresses toward completion.
Latest Developments in the Shinjuku Station West Exit District Redevelopment Plan
Impact of Redevelopment on Surrounding Real Estate Values
The large new supply of approximately 3,200 units may appear at first glance to put pressure on surrounding rental prices. However, what is important is that this project will house not just residences, but a complex mix of shops, offices, daily life support facilities, and nurseries. As life convenience significantly improves and the degree to which daily life can be completed within walking distance increases, the overall rental demand for the area is expected to receive a boost.
Furthermore, while the Hatsudai/Nishi-Shinjuku 3-chome area has traditionally been treated as a "slightly lower-profile zone" within Nishi-Shinjuku, the completion of the 230m-class twin towers is expected to significantly raise its profile. This will also support used condominium prices. Given the approximately 10-year timeline until completion in fiscal year 2035, the attention to this area as part of a long-term holding investment strategy is expected to increase further.
Signal Effect of Major Developer Participation
The participation of Nomura Real Estate, Sumitomo Corporation, and Tokyo Tatemono—three of Japan's leading domestic real estate companies—as member developers is an important signal demonstrating the level of risk management and the reliability of revenue projections. These developers decided to participate after conducting their own market research and financial simulations, and their continued involvement signifies a strong commitment to the project. This is valuable information for individual investors evaluating the area.
Actions Owners Should Take
For real estate owners with assets near the Nishi-Shinjuku 3-chome West District, there are points to consider at this stage. First, the approximately 10-year timeline until completion means there is no urgency to decide "whether to sell now." On the other hand, as demolition and construction activity intensifies from fiscal year 2027 onward, there may be temporary changes in the living environment, such as construction noise and traffic restrictions in the vicinity. For those managing rental properties, careful disclosure of information to tenants and consideration of rent and contract condition reviews as needed are advisable.
It is also important to continuously monitor how rental demand in the area will trend with the increase in supply after completion. The impact will differ greatly between properties that compete with new tower condominiums and those that benefit from improved life convenience. Maintaining a stance of closely tracking area market changes and optimizing portfolios will contribute to the long-term maintenance of asset values.
Overview of Shibuya Station Area Redevelopment and Its Impact on Real Estate Values
Summary
Key points of the Nishi-Shinjuku 3-chome West District Class 1 Urban Redevelopment Project:
- Scale: Nishi-Shinjuku's largest development, centered on twin towers—North Tower at 63 floors/~229m and South Tower at 62 floors/~228m—with approximately 3,200 total units and a total floor area of approximately 383,578 m²
- Structure: Nomura Real Estate, Sumitomo Corporation, and Tokyo Tatemono as participating member developers; Maeda Construction Company as designated business contractor
- Schedule: Due to rising construction costs, construction start delayed from fiscal year 2026 to fiscal year 2028. Rights conversion plan approval: fiscal year 2026; completion: fiscal year 2035
- Land Price Trends: Shinjuku Ward's 2026 published land prices are averaging +12.88%, continuing a high level of increase
- Investment Perspective: Against the backdrop of certainty from finalized urban planning decisions and established association, the long-term value appreciation potential for the area is high
Rather than reacting to the short-term change of the construction delay, it is important to develop an asset strategy with the long-term vision of the fiscal year 2035 completion in mind.
Frequently Asked Questions (FAQ)
Q1. What phase is the Nishi-Shinjuku 3-chome West District redevelopment currently in?
The Urban Redevelopment Association received establishment approval from the Tokyo Metropolitan Government in February 2023, and the project is currently in the rights conversion plan formulation phase. The rights conversion plan approval is scheduled for fiscal year 2026, and demolition of existing buildings is expected to begin in fiscal year 2027.
Q2. When is completion? I heard the schedule has changed.
According to the latest outlook as of January 2026, design reviews are being conducted in response to soaring construction material prices and labor costs, and the construction start has been delayed from the originally planned fiscal year 2026 to fiscal year 2028. Accordingly, completion and project finish is expected in fiscal year 2035. The administrative approvals of association establishment and urban planning decision have been completed, and the project's certainty is maintained.
Q3. When will the impact on the rental and sales markets near the redevelopment zone begin to be felt?
The expected value for land prices is already reflected to a certain degree in the 2026 published land prices (up 12.88% year-on-year). Physical impacts (noise, traffic restrictions, etc.) will intensify after demolition work begins in fiscal year 2027, and the demand-boosting effect is expected to materialize fully after completion in fiscal year 2035. However, the psychological premium from increased recognition may begin forming even before completion.
Q4. What is the significance of Nomura Real Estate and Sumitomo Corporation participating?
The participation of major developers as member developers means that professionals have scrutinized the project's profitability and feasibility before committing. This functions as a factor that reduces the risk of any potential project interruption, and positively influences the lending decisions of financial institutions and the valuation of nearby real estate. This is a signal effect that smaller-scale redevelopment projects do not have.
References
- Shinjuku City Official "Nishi-Shinjuku 3-chome West District Class 1 Urban Redevelopment Project (Under Construction)"
- Tokyo Metropolitan Bureau of Urban Development "Nishi-Shinjuku 3-chome West District Class 1 Urban Redevelopment Project"
- Tokyo Metropolitan Government Press Release "Approval of Nishi-Shinjuku 3-chome West District Urban Redevelopment Association Establishment" (January 31, 2023)
- Nomura Real Estate Press Release "Decision on Participating Member Developers for Nishi-Shinjuku 3-chome West District Class 1 Urban Redevelopment Project" (February 2, 2023)
- Shinjuku City "Reiwa 8 Published Land Prices (Summary of Land Prices in the Ward)"
