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This is a familiar story that is, of course, not unique to Japan:
“Danchi”, or apartment blocks built by Japan’s housing agency during the country’s high-growth period, may look grim and outdated in today’s Tokyo, where flashy glass and steel towers reign.
However, I only just learned that, since 2013, the Japanese houseware brand Muji has been renovating apartments within these housing blocks in an attempt to reduce vacancies:
But danchi are becoming hip again, thanks to modern renovations by lifestyle brand Muji, which is turning the poky, multi-room flats into open-plan studios.
The above excerpts are from a 2015 article, but this partnership between Muji and Japan's Urban Renaissance (UR) Agency continues to this day. Today, they're also focused on creating a greater sense of community within these danchi neighborhoods.
It's a logical collaboration. Both want to bring good and affordable design to the masses. And obviously there are brand benefits for Muji. It's a way to expose more people to their products.
But what I find particularly interesting is that it, once again, shows the potential of a strong brand within the real estate industry.
According to the same 2015 article, as soon as Muji completed its first round of apartment renovations, UR saw 2x the number rental applications from people in their 20s and 30s. Perhaps the number is even higher today.
Clearly what happened is that you had young followers of the brand who said to themselves, "oh if Muji is involved, it must then be cool and nice, and so I'd like to live there."
I mention this because, as a gross generalization, real estate companies don't seem to focus on their own brands in the same way other companies do. (Again, I'm making a gross generalization.)
Instead, they often rely on 3rd party brands -- hotel brands, fashion brands, and whatever else -- to augment as needed. (See "Dubai is now the capital of branded residences.")
Maybe this is truly the optimal way to do it. Just partner as needed. Or maybe more real estate companies should invest in their own brand.
Photo by taro ohtani on Unsplash
Earlier this month, Resonance Consultancy published its 2024 World's Best Cities ranking. Or, in their words: its definitive power ranking of the 100 global cities that it believes are shaping tomorrow.
These are always fun to flip through, which is I guess why people do them and why people look at them; but I do think it's important to look at the underlying methodologies. Otherwise, what does "world's best" even really mean?
In this case, they're looking at global cities through the lens of three key categories: livability, lovability, and prosperity. More specifically though, the report looks at factors that are demonstrated to have moderate to strong correlations with attracting talent, visitors, and/or businesses.
This makes it distinct from rankings that are more focused on things like livability. Because according to Resonance, factors such as commute times, crime, and housing affordability don't tend to correlate strongly (at least in the short-term) with a city's ability to attract talent, tourism, and investment.
While this may seem a bit counterintuitive, it does also make sense. People don't move to London because they're looking for affordable housing and a reasonable commute. They move to London because they want to be in the center of the world.
And yes, London tops their power ranking:
People continue to buy expensive homes:
Global super-prime ($10m+) residential sales bounced back in Q1 2023, with 417 sales across the 12 markets tracked in Knight Frank’s new Global Super-Prime Intelligence report. That's up 11% on the 376 recorded in Q4 2022 and the highest volume since Q2 last year.
The biggest market in Q1 this year was Dubai (88 sales), followed by Hong Kong (67), New York (58), Los Angeles (46), Singapore (37) and London (36). While volumes rose in Q1, the total value of sales fell 4% to $7.2 billion. The most expensive average super-prime sales took place in Geneva ($23.8m) and London ($20.4m)
What is perhaps most interesting, though, is how central Dubai has become in the flows of global capital. In 2019, Dubai accounted for 2% of all super-prime sales in the 12 markets that Knight Frank tracks.
Today, looking back at the most recent 12-month period, Dubai now accounts for 17% of all super-prime sales, placing it ahead of London, New York, and Los Angeles.
Part of this jump likely has something to do with the "housing disaster" that Dubai was going through back in 2019. But even still, it is impressive to see just how quickly the city has managed to build and position itself as an alpha global city.
I much prefer walkable cities, but clearly there are enough other people who don't care about that sort of thing.
The top of this ranking isn't all that surprising. It's the usual suspects. But I continue to be impressed by how quickly Dubai has transformed itself into a top global city. Also impressive is how Dublin punches above its weight of just over 500,000 people.
I am medium surprised to see Hong Kong nowhere on this first page (there are another 65 cities not shown here). It usually features as a top global city. But presumably this is the result of Beijing meddling. People are looking elsewhere -- like Singapore.
For the full list of cities and to download a copy of the report, click here.
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