02:41
Time to continue our "mega cities" series, and we go to Tokyo. Pre-Olympic infrastructure needs are fueling a construction boom in the Japanese capital. But the problem of oversupply goes beyond just homes and apartments. Our reporter Steve Ross has more from Tokyo.
SETH SULKIN PACIFICA CAPITAL "Japan is facing a big demographic problem. At the moment, the overall population is slightly declining. Within two to three years, even greater Tokyo is expected to have the population start to decline."
Seth Sulkin is president of Pacifica Capital in Tokyo, a firm specializing in property investment and development. Pre-Olympic infrastructure needs are fueling a construction boom in the Japanese capital. The Japanese yen offers a comparative international currency bargain, helping drive inbound tourism and hotel room building. But is the building boom sustainable? The problem of oversupply goes beyond just homes and apartments.
SETH SULKIN PACIFICA CAPITAL "Japan has a huge problem with shopping centers. Inbound tourists love going to department stores or outlet malls, but they don't go to ordinary shopping centers. And so it's these ordinary shopping centers that are really going to struggle in the years to come."
STEVE ROSS TOKYO "Despite a pre-Olympic building boom, empty apartments and homes like this one are a common sight in Tokyo, and are likely to become more so in the years ahead."
In central Tokyo, in the shadow of modern high rises, "akiya", Japan's abandoned properties, abound. Satoru KUBO of Kariage Japan specializes in remodeling and reselling them.
SATORU KUBO KARIAGE JAPAN "The reality is, Japan's population is decreasing. People are not having children which is the cause of the increase in empty homes. That's the way it is now."
Kubo echoes expert opinion that the issue of empty structures is one that has expanded well beyond just living spaces in this rapidly aging society.
SATORU KUBO KARIAGE JAPAN "As for the shopping street problem, the owners can't run the shops because of their age. They have to close them."
And, despite recent legislation and his company's efforts, he doesn't see any quick fix to the problem.
SATORU KUBO KARIAGE JAPAN "We didn't pay tax on abandoned homes in the past. The law has changed now to increase such taxes year on year. By law, the owners should do something with the structures. But the reality is it doesn't work well."
Steve Ross, CGTN, Tokyo.