TOKYO, Mar 11 (News On Japan) - The redevelopment plan for the former Nakano Sunplaza site has been scrapped due to soaring project costs, causing widespread reaction.
Nakano Sunplaza, beloved by many as a venue for weddings and concerts, was closed in July 2023 due to aging infrastructure. The redevelopment plan initially called for a mixed-use complex, including residential and office spaces, to be built on the site and its surrounding areas.
However, the project faced repeated cost revisions due to rising material and labor expenses. The initial estimate of 181 billion yen nearly doubled, with projections in September 2024 suggesting costs could swell to 353.9 billion yen.
According to sources, Nakano Ward intends to request the termination of its agreement with the developer, Nomura Real Estate. If the contract is canceled, the redevelopment plan will be scrapped, requiring a complete reassessment of the project, including selecting a new developer.
In Tokyo, similar redevelopment challenges have emerged. The TOC building, a commercial facility near JR Gotanda Station, was temporarily closed but postponed its reconstruction due to escalating construction costs. Experts warn that such reviews of redevelopment projects will likely increase in the future.
Real estate consultant Osamu Nagashima noted: "Construction costs have been rising for the past decade. It's not just Nakano Sunplaza—many projects nationwide will face revisions or even cancellations."
Source: FNN
