On the east side of Shibuya Station in the Miyamasuzaka area, the largest redevelopment project in the Shibuya district is steadily taking shape. The "Shibuya 2-Chome West District Type I Urban Redevelopment Project" boasts an unprecedented scale, with a site area of approximately 18,800㎡ and a total floor area of approximately 322,200㎡. Demolition work is currently underway, with full-scale construction targeted to begin during fiscal year 2025. In the 2026 official land price assessment, Sakuragaoka-cho in Shibuya Ward recorded a year-on-year increase of +29.0%, ranking first across all land-use categories in Tokyo. The impact this redevelopment will have on the broader real estate market is immeasurable. In this article, we examine the latest construction progress, the purpose and scale of each block, and the key points real estate investors should be watching.
The Largest Redevelopment in the Shibuya Area — A Complete Overview
The "Shibuya 2-Chome West District Type I Urban Redevelopment Project" is located in Shibuya 2-chome, Shibuya Ward, Tokyo (east side of Shibuya Station, Miyamasuzaka area). It has been designated as a National Strategic Special Zone and Special Urban Renaissance District. The project is carried out by the Shibuya 2-Chome West District Urban Redevelopment Association, with Tokyo Tatemono Co., Ltd. and the Urban Renaissance Agency (UR) as key participants driving the initiative. As its official name "Shibuya REGENERATION Project" suggests, this is a project that embodies the "regeneration" of Shibuya at the urban level.
The planned area consists of three blocks — A, B, and C — with a combined total floor area of approximately 322,200㎡. This makes it the largest single redevelopment in the Shibuya area, far surpassing the floor space of existing developments such as Shibuya Scramble Square and Shibuya Stream. Designed as a mixed-use development that integrates transportation, industry, and residential functions, the project holds a prominent position in urban planning as an initiative to enhance the competitiveness of Tokyo as a global city.
Purpose and Scale of Each Block
Understanding the characteristics of each block is the first step to accurately grasping the value of this project.
Block A is a commercial facility with 5 above-ground floors and 1 basement floor, standing approximately 50m tall with a total floor area of about 4,200㎡. As a low-rise building facing Aoyama-dori, it serves as a commercial hub that adds vibrancy to the area. While modest in scale, it plays a vital role in creating a cohesive streetscape alongside the large towers of Blocks B and C.
Block B is the centerpiece of the project — a 41-story tower with 4 basement floors, standing approximately 208m tall with a total floor area of about 255,000㎡. Its primary uses include offices, a hotel, a bus terminal, and a STEAM talent development facility. Particularly noteworthy is the approximately 5,000㎡ bus terminal, which will significantly enhance Shibuya Station's function as a transportation hub. The inclusion of a STEAM (Science, Technology, Engineering, Art, and Mathematics) talent development center is a strategic move to position Shibuya as a knowledge industry cluster.
Block C is a tower residence with 41 above-ground floors and 2 basement floors, standing approximately 175m tall with a total floor area of about 63,000㎡. Centered on residential use, it will also include lifestyle support facilities. A tower condominium of this scale within walking distance of Shibuya Station is exceptionally rare, and strong demand is expected from high-net-worth individuals, foreign residents, and professionals seeking to live close to work.
Current Progress — Demolition Work in Full Swing as of March 2026
Following the urban planning decision in March 2022 (announced by Shibuya Ward), the project received approval and the redevelopment association was established in January 2023 under authorization from the Governor of Tokyo. A project approval amendment was made in July 2024, and demolition work began in earnest in 2025.
Starting in March 2025, demolition began on the Mizuho Bank Shibuya Operations Center (main building and annex, with a combined floor area of approximately 76,000㎡). This demolition is scheduled for completion by December 2026. Starting in July 2025, demolition of the Token International Building commenced, targeting completion by June 2026. On the ground, the transformation of the streetscape is visibly progressing, and the reality of the redevelopment is becoming increasingly apparent.
During fiscal year 2025, the approval of the rights conversion plan and the commencement of main construction are scheduled. As of March 2026, demolition work is proceeding on schedule, and preparations for the start of main construction are steadily falling into place. The target completion date is fiscal year 2029, meaning the eastern skyline of Shibuya will be dramatically transformed in approximately 3 to 4 years.
| Milestone | Timeline |
|---|---|
| Urban Planning Decision | March 2022 |
| Project Approval / Association Establishment | January 2023 |
| Demolition Work Begins (Mizuho Bank Shibuya Operations Center, etc.) | March 2025 – |
| Token International Building Demolition | July 2025 – |
| Rights Conversion Plan Approval / Main Construction Start (Planned) | During FY2025 |
| Target Completion | FY2029 |
Land Prices and the Shibuya Real Estate Market — What a +29.0% Increase Signals
In the 2026 official land price assessment, Sakuragaoka-cho in Shibuya Ward was valued at ¥4,450,000 per square meter, recording a year-on-year increase of +28.99–29.0% — the highest growth rate across all land-use categories in Tokyo. Commercial land across Shibuya Ward also rose by +13.5%, significantly outpacing the Tokyo 23-ward average of +9.0%. These figures are not a one-year anomaly but the cumulative result of value appreciation driven by completed redevelopments such as Shibuya Scramble Square, Shibuya Stream, and Shibuya Fukuras. The anticipation surrounding upcoming developments, including the 2-Chome West District project, has added momentum, producing a compounding effect on land prices.
Office vacancy rates in Tokyo's five central wards dropping below 3% have also underpinned this land price appreciation. Block B of the Shibuya 2-Chome West District project is expected to allocate a significant portion of its 255,000㎡ floor area to office space, delivering a large-scale supply of high-quality office floor upon completion. However, what deserves even greater attention is how each major redevelopment completion elevates the area's convenience, reputation, and international appeal. A self-reinforcing cycle has formed in which the asset values of surrounding pre-owned condominiums, commercial buildings, and rental properties rise in tandem.
Within Shibuya Ward, other redevelopment projects such as the Dogenzaka 2-Chome South District are also progressing simultaneously, sustaining the dynamic often described as a "once-in-a-century chain of redevelopment." For a comprehensive overview, see The Full Picture of Shibuya Station Area Redevelopment and Its Impact on Property Values. We believe the process of Shibuya's elevation as a city will continue at least through the early 2030s.
Key Actions for Real Estate Investors Right Now
Here are several perspectives investors should consider before this project's completion in fiscal year 2029.
Recognizing the scarcity value of the east side of Shibuya Station is the first step. Compared to the west side of Shibuya Station (the Dogenzaka and northwest Miyamasuzaka areas), the Miyamasuzaka and 2-Chome districts have seen fewer large-scale redevelopments, leaving relatively greater room for asset value growth. The official land price growth rate proves this scarcity in hard numbers. Existing rental condominiums and commercial buildings in the area are also expected to see rising rents and sale prices, buoyed by improved livability and enhanced brand recognition from the redevelopment.
Keeping a close eye on the Block C tower residences is equally important. Upon completion, it will be the largest tower condominium within walking distance of Shibuya Station, attracting concentrated demand from high-net-worth individuals, foreign residents, and tech professionals. While new unit prices are expected to command a premium, the liquidity and rental yields could rank among the highest in the Shibuya area as an investment asset.
The combined effect of offices, a hotel, and a bus terminal will substantially increase the area's daytime population, tourist traffic, and business visitors. These benefits will extend beyond the redevelopment site itself to properties within a 10–15 minute walk. For owners holding existing income-producing properties in Shibuya 2-chome, 3-chome, and the eastern Shibuya area, it is critical to begin incorporating 2029 and beyond into their asset management plans — particularly regarding rent revisions and optimal timing for property sales.
On the other hand, noise, vibrations, and construction vehicle traffic during the demolition and construction period must be recognized as risks. Nearby rental properties may experience temporary declines in occupancy or lease renewal rates. Regularly cross-referencing the construction schedule with the condition of your own properties is essential. As demonstrated in the case of the Dogenzaka 2-Chome South District Type I Urban Redevelopment Project — Shaping the Future of Shibuya, it is prudent to separate your management strategy during the construction period from your plan to capture post-completion value appreciation.
Our Perspective
Having followed the Shibuya 2-Chome West District redevelopment for several years, what strikes me most is that this project transcends the category of a "real estate investment opportunity" — it is a fundamental urban decision. The bus terminal development and the STEAM talent development center are not about short-term returns; they are long-term investments to ensure Shibuya remains a globally competitive city. This perspective aligns perfectly with what we have always communicated to property owners: the importance of a "long-term vision in asset management."
The fact that Sakuragaoka-cho in Shibuya Ward posted a +29.0% increase in the 2026 official land price assessment is proof that the market has judged "this redevelopment is real." However, it is precisely during phases of rising prices that calm, clear-headed judgment is most critical. The key question is whether the value appreciation is backed by genuine demand from Shibuya's brand power and the redevelopment, or whether it is merely speculative overheating. Answering this requires a meticulous examination of each property's fundamentals — location, building age, management condition, and tenant profile.
At INA&Associates, we continuously monitor the Shibuya area real estate market. Our mission is to provide accurate information and transparent advice to our diverse clientele, including high-net-worth individuals and international investors. To maximize the benefits of this redevelopment, we believe that building your asset strategy now — at this stage — in partnership with specialists will ultimately generate the greatest value.
Summary
Here are the key takeaways from the Shibuya 2-Chome West District Type I Urban Redevelopment Project:
- Scale: A site area of approximately 18,800㎡ and total floor area of approximately 322,200㎡ — the largest in the Shibuya area. A mixed-use development anchored by two towers: Block B at 208m and Block C at 175m
- Uses: Offices, hotel, bus terminal, and STEAM talent development center (Block B) + tower residences and lifestyle support facilities (Block C) + commercial (Block A)
- Progress: Demolition work began in March 2025 (scheduled for completion in 2026). Rights conversion plan approval and main construction start planned during FY2025. Target completion: FY2029
- Market Conditions: Official land prices in Shibuya Ward's Sakuragaoka-cho rose +29.0% year-on-year, the highest growth rate across all land-use categories in Tokyo. A cascading chain of redevelopments continues to drive land price appreciation
- Investment Perspective: Evaluating the scarcity of the eastern Shibuya area, demand for Block C tower residences, and post-completion ripple effects with a long-term outlook is essential
As the FY2029 completion date approaches, the eastern skyline of Shibuya will undergo a dramatic transformation. To make the most of this change, it is important to start gathering information and reassessing your asset strategy now.
Frequently Asked Questions (FAQ)
Q1. When is the Shibuya 2-Chome West District Type I Urban Redevelopment Project expected to be completed?
The target completion date is fiscal year 2029. Main construction is scheduled to begin during FY2025, and demolition work has already commenced as of March 2025. While the timeline may shift slightly depending on construction progress, the project is currently proceeding on schedule.
Q2. Will the Block C tower residences be available for purchase? Will they be for sale or for rent?
As of March 2026, the detailed terms for sales and leasing have not been officially announced. Please refer to official announcements from the Shibuya 2-Chome West District Urban Redevelopment Association and Tokyo Tatemono Co., Ltd. Based on past large-scale redevelopment precedents, a mixed model of for-sale and rental units is common, with information typically disclosed 2–3 years before completion.
Q3. How will this project affect the value of surrounding rental properties?
In general, the completion of a large-scale redevelopment leads to increased rents and asset values through improved area convenience, enhanced brand recognition, and greater foot traffic. However, during the construction period (2025–2029), there may be impacts from noise and vibrations. Property owners in the vicinity should prepare their management strategies for the construction period while keeping an eye on the value gains expected after completion.
Q4. Are there other notable redevelopment projects in the Shibuya area that investors should watch?
Multiple redevelopments are progressing simultaneously around Shibuya Station, including the Dogenzaka 2-Chome South District Type I Urban Redevelopment Project. For a comprehensive overview of redevelopment trends across Shibuya, see The Full Picture of Shibuya Station Area Redevelopment and Its Impact on Property Values. It is important to evaluate individual properties only after gaining a panoramic understanding of the changes across the entire area.
Related Reading
- The Full Picture of Shibuya Station Area Redevelopment and Its Impact on Property Values
- Shaping the Future of Shibuya: The Dogenzaka 2-Chome South District Type I Urban Redevelopment Project
Citations and References
- Shibuya Ward, "Shibuya 2-Chome West District Type I Urban Redevelopment Project" (2022–)
- Tokyo Metropolitan Government Bureau of Urban Development, "Shibuya 2-Chome West District Type I Urban Redevelopment Project" (2022–)
- Urban Renaissance Agency (UR), "Shibuya 2-Chome West District Urban Redevelopment Association Establishment Press Release" (January 2023)
- Tokyo Tatemono Co., Ltd., "Shibuya 2-Chome West District Type I Urban Redevelopment Project — Notice of Urban Redevelopment Association Establishment" PR TIMES (January 31, 2023)
