Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: japan

  • This slash that

    Maison Kitsuné is a French-Japanese lifestyle brand that was founded in 2002 as both a record label and a fashion house. Apparently, the founders — Gildas Loaëc and Masaya Kuroki — started out by DJ’ing in order to promote their brand and clothes.

    In 2005, they released a full ready-to-wear collection and, according to Wikipedia, fashion has come to represent about 90% of the company’s revenue (2020 figure).

    In 2013, Kitsuné opened their first coffee shop in Tokyo. And since then, they have expanded around the world, opening cafes in Paris, Vancouver, Shanghai, and many other cities. As of today, I think they have 35 around the world.

    Their latest venture is something a bit new though. It’s called Desa Kitsuné, it’s located in Canggu, Bali, and it’s their first ever clothing shop/restaurant/club. It also comes with a pool and the idea is that you can do lots of different things here: shop, lounge during the day, and/or party at night.

    I always find it interesting when different ideas and approaches are combined. And that’s what Kitsuné continues to do. They also plan to do more of it. According to Monocle, the company wants to reach 100 cafes/restaurants around the world in the next 5 years.

    So keep an eye out for more foxes in your city.

  • Cheaper or better?

    One perfectly sound approach is to just be the cheapest. This often entails lower margins, but hopefully higher volumes. However, the problem with this approach is that it can become a race to the bottom. At some point, somebody will find a new corner to cut. As Seth Godin says, “the problem with the race to the bottom is that you might win.”

    On the other end of the spectrum is this approach:

    This is a pamphlet describing full ripeness mangoes from the Miyazaki prefecture in Japan. These are not the cheapest mangoes around. In fact, it’s the opposite; they’re generally known to be the world’s most expensive. But they will almost certainly be the best mangoes that you’ve ever tasted. And you’ll only be able to get them between the months of April and August.

    Sometimes it’s possible to be both cheaper and better. And that’s obviously an ideal position to be in. But in many, or perhaps most cases, you’ll need to choose. Cheaper, or that much better.

  • How Muji is collaborating with Japan’s housing agency

    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

  • Should more people live together?

    We know that, for a variety of reasons, more and more people are living alone. As of 2018, single-person households represented about 28% of all households in the US. This is up from 13.1% in 1960.

    Here in Canada, single-person households became the predominant household type in 2016 (we’re also at 28%) for the first time in Canada’s 150+ year history. And the numbers are even higher for some European countries. In Finland, Germany, and Norway, more than 4 in 10 households are single-person.

    Part of this has to do with people living longer. In Canada, 42% of people aged 85 or older (and living in a private household) live alone. But part of this is also cultural. Japan has one of the oldest populations in the world, but it doesn’t have the highest percentage of single-person households. Although, the number is relatively high and increasing. It’s nearly 40%.

    Whatever the case may be, you could argue that there appears to be some sort of global trend line toward more people living alone. But here’s an important question: Is this a good thing?

    Albert Wenger recently argued in this blog post that, actually, we need new forms of living together. Whether it’s multigenerational living or coliving with like-minded friends, there are clear benefits to living with other people. You get to share resources. You get elders that can look after kids. And you get company.

    There’s also an opportunity to curate your environment. As Phil Levin puts it on his coliving blog Supernuclear: “If your home is filled with motivated people, you will be more motivated. [And] if your home is filled with funny people, you will laugh more.”

    Albert posits that office conversions (which are obviously in vogue right now) could serve as an opportunity to rethink our built environment around coliving. And while this is certainly true, I’m not sure we need it to happen. There are ways we can live together today, within our existing environment, if we want to.

    The question is: do we?

  • Why so few people drive in Tokyo

    Daniel Knowles, who is a correspondent for the Economist, recently authored a book called Carmageddon: How Cars Make Life Worse and What to Do About It. I haven’t read it, yet, but I did just read this excerpt about Tokyo, and it was jam-packed with interesting stats.

    Here are some of them:

    • Among developed cities, Tokyo has the lowest car use in the world. About 12% of trips are completed with a car, whereas 17% of trips are done with a bicycle. Most people walk and/or take transit. Tokyo has the most-used public transit system in the world — about 30 million people each day.
    • Car ownership across Japan is about 590 vehicles per 1,000 people. This is comparable to many European countries. In the US, it’s about 800 vehicles per 1,000. However, this figure drops in Tokyo. Here, the average is about 0.32 cars per household, which was interesting to see because most new housing projects in downtown Toronto have parking ratios that are much lower than even this figure.
    • The average size of a home in Tokyo is 65.9 square meters of usable area. By comparison, the average size of a home in London is 80 square meters. But given that according to Knowles, the average household size in London is 2.7 people, whereas it’s 1.95 in Tokyo. So per capita, Tokyoites actually have more space than Londoners.
    • 35% of streets in Japan are not wide enough to fit a car. If you add in streets that are wide enough to fit a car but not wide enough that a car could stop and not entirely block traffic, this figure jumps to 86%. This to me is a massively significant statistic, because if you want people to walk places you need small streets.
    • 95% of streets in Japan do not allow any sort of street parking — day or night.
    • The average Japanese car owner drives around 6,000 kilometers per year. This is about a third of what the average American does. In my case, it looks like I have averaged about 8,868 kilometers per year over the last 5 years. Though a big chunk of my kilometers would be from longer one-off snowboarding trips. In other words, I don’t drive all that often in the city.
    • Japan has some of the most expensive road tolls/prices in the world. Meaning, Japan does not actively subsidize driving and instead just charges drivers accordingly. Apparently the average is about 3,000 yen per 100 kilometers, which is about CA$30 per 100 kilometers.
    • In addition to not subsidizing cars, Tokyo is also one of the few cities in the world where their public transit does not need to be subsidized. A big part of this has to do with high ridership, but the other important part is that its transit authorities also develop real estate. Shockingly, this means that it tends not to build standalone and single-storey transit stations (ahem, I’m looking at you Crosstown LRT). Instead, they build lots of density where it always belongs: on top of transit.

    I may just have to read Knowles’ book.

  • Skyscraper construction speed by city

    Brian Potter, of Construction Physics, recently tried to determine which cities build skyscrapers the fastest.

    Here’s how he went about that:

    • He started by looking up the 50 largest cities in the world on Wikipedia
    • He then pulled data from the Council on Tall Buildings and Urban Habitat to get a list of every skyscraper completed between 2000-2020 that was over 100 meters, had a start and completion date, and had a gross floor area
    • The result was a list of 986 skyscrapers completed in 39 cities, most of which (~740) were completed in the US, China, Japan, and Canada
    • Finally, he calculated completed square feet per year and made some charts

    Here are the results:

    And here’s one thing he had to say about them:

    Interestingly enough, the huge outlier in slow construction isn’t the US, but Canada, with an average skyscraper construction speed of half that of the US’s.

    For a lot more information on this topic, click here.

  • The most expensive new subway line in the world

    In other New York City news, they apparently have the most expensive new subway line in the world:

    At $2.5 billion per mile, construction costs for the 1.8-mile Phase 1 of the Second Avenue Subway were 8 to 12 times more expensive than similar subway projects in Italy, Istanbul, Sweden, Paris, Berlin and Spain, according to a report from New York University’s Marron Institute of Urban Management.

    This is an important problem because public transit is good for cities:

    It is not possible to outdo the subway in capacity per amount of land consumed— and in a high-demand city, 12-lane freeways are prohibitively land-intensive. Hook (1994) argued that Japan focused on rail transportation in its largest cities because it had high land values in the postwar era and such strong property rights that widespread land condemnation for freeways based on the American model was impossible.

    If this is a topic that interests you, I would encourage you to check out the report, as well as their Transit Costs Project website. It allows you to compare transit project costs for 159 different cities.

  • Brutalist live/work creative space opens in Kanazawa, Japan

    I am really interested in these sorts of spaces. In this case, these is an old brutalist office building in Kanazawa, Japan that was purchased in 2019 by artist Hiraki Sawa. The original intent was to turn it into a co-working space, but eventually the idea evolved into a hybrid “co-being” space that can be rented as a place to stay and/or as a place to facilitate creativity.

    The space itself was left mostly raw and exposed, but neon movable walls were inserted by AB Rogers Design that allow you to configure the volumes as you’d like. What’s interesting about spaces like these is that they enable play and experimentation. Maybe it also makes money, or maybe it doesn’t. But that doesn’t seem to be the main point.

    The point is to empower creativity. And finding spaces to do this can be tough in competitive markets where demand is consistently outstripping supply. Oftentimes you need some slack in the system so that there’s literal breathing room for new ideas, or rich people who can make it so.

    Whatever the case, I am a believer that when given the opportunity, people will generally find a way to imagine and create. So if you happen to find yourself in Kanazawa and would like to book this space, which is called Fish Market, click here. Guests are being asked to submit a request explaining how and why they’d like to use the space.

    It’ll be fun to see what this leads to.

    Photos: Takumi Ota via AB Rogers Design

  • Japan pays people to leave Tokyo

    We have spoken over the years — here, here, and here — about the centralizing and decentralizing forces that play out within our cities. Agglomeration economies, for example, are a centralizing force. There are real economic benefits to people and firms clustering together in cities.

    However, there are also many decentralizing forces. Traffic congestion is one. And of course, the pandemic also proved to be a powerful one for many cities.

    But the fact that we even have cities in the first place should tell you that the centralizing forces do tend to win out over the decentralizing ones. And a perfect example of this is Tokyo. Usually considered to be the largest metropolitan area in the world, Tokyo has about the population of Canada in one city region.

    And here, the centralizing forces are so great — even for families — that the government actually pays people to relocate to places outside of Tokyo’s 23 wards (and its immediately surrounding areas). Previously the maximum figure was ¥300,000 per child (~CA$3,056), but this has now been increased to ¥1 million per child (~CA$10,188).

    A key driver of this is surely Japan’s demographic problem (namely a shrinking and aging population base). But it doesn’t change the fact that lots of people appear drawn to the world’s largest city.

  • Distributed Japanese capsules

    Japanese Metabolism was a post-war architectural movement that was based around the idea that cities and buildings should be able to grow and transform just like other organisms. There are other elements to the movement, but this was at its core. And perhaps the best example of the Metabolism movement was the Nakagin Capsule Tower in Tokyo (pictured above).

    Constructed between 1970 and 1972, the 13-storey tower consisted of two structural elements and 140 self-contained / prefabricated capsules that were hung off the building’s cores.

    The original intent was that these capsules could be removed and replaced over time and that the building could evolve just like any other organism might. But that never really happened and, coming on the end, only about 30 of the 140 capsules were apparently still being lived in, with the others being used for various purposes, such as storage, or not at all.

    And so after a whole lot of debate, the building was disassembled earlier this year, which isn’t quite the same as a straight demolition. The pods were removed and then the core came down.

    But a number of the pods have been salvaged. The architect’s family took 4 pods and created an Airbnb retreat a few hours outside of Tokyo. And a longtime resident in the building decided to quit his job, acquire 23 of the capsules, and dedicate his life to now getting these things into museums and other commercial settings.

    I don’t feel like it’s my place to comment on whether disassembling the tower was a good idea or not. But I do think there’s something poetic about an icon of Metabolism having its capsules removed, restored, and then sprinkled around various places. Wasn’t that always kind of the intent?

    Photo by Roman Davydko on Unsplash