Advantages of Japan’s real estate investment

Tokyo Minato-ku

The number of international travelers to Japan has seen a rapid increase for the last several years. These tourists spend quite a lot at department stores and retailers, boosting their sales. Their shopping spree is described as “explosive buying”, which has become a buzzword. It’s no exaggeration to say that overseas tourists make a large contribution to the Japanese economy. Most of the buyers with “explosive buying” habit are from Asian countries such as China, Taiwan, Singapore and Thailand. These tourists are most known to buy high-quality Japanese electronics, medicines, cosmetics, and brand items, but in fact properties are also very popular and purchased in an “explosive buying” manner.

Properties in Japan are relatively inexpensive compared to the ones in China, Hong Kong, Taiwan and Singapore, where property price has skyrocketed, making the yield lower than before. On top of that, the unit price in Tokyo is only 60% of that of other major cities in other countries, despite the fact that Tokyo has the third largest market in the world. Properties in Tokyo have become more popular investment targets.

Japan’s property is highly regarded by overseas investors for the below reasons. The popularity is likely to grow even more with the Olympic Games coming in 2020, experiencing an increase in workers and students from other countries, having lower cost of goods due to weak yen and establishing national strategic special zones, designated by the government. Overseas investors are not missing these trends.

1. Size and fluidity of property market
2. Stability of property investment related system
3. Standard risk of property investment
4. Stability of politics and economy
5. Safe asset of yen, less susceptible to international financial crisis or corrupted government

Read on this article to learn popular investment properties in Tokyo for overseas investors.

Popular investment property areas in Tokyo

Minato-ku(港区)
Tokyo Minato-ku
Roppongi in Minato ward is highly recommended for foreign investors. Many international cooperations and embassies are gathered in this area, surrounded by upscale residential districts such as Hiroo, Shirokane and Takanawa, where hundreds of overseas residents live. These districts offer plenty of stylish cafes, restaurants and boutiques. Their location is also convenient, being close to major cities, including Roppongi, Ebisu and Omotesando. Akasaka and Roppongi have dozens of expensive condominiums and integrated property developments, including the city’s landmark, Roppongi Hils. Among the commercial buildings, leading corporations are also established. If you’re from overseas, you may be concerned about language issues, but there is no need to worry. You can find international schools in Roppongi and English-friendly hospitals and restaurants are available. Minato is highly favored by a wealthy class and foreigners. When it comes to property investment, this area can produce a relatively stable yield.

Chiyoda-ku(千代田区), Chuo-ku(中央区)
Japan’s starting spot, Tokyo station is located in Chiyoda. Nor only this area is convenient to get around the city, it is also a gateway to Tohoku and Kansai areas. The most dynamic office district, Marunouchi is in this area as well. Neighboring Chuo ward has an upscale commercial district, Ginza. The land price of Ginza is the highest in Japan. Nihonbashi is also in Chuo ward. You can experience traditional Japanese culture and period in Nihonbashi despite its central location. Chiyoda and Chuo represent Japan. It’s not too much to say that their brand name is ranked as the best in Japan. Their property is extremely expensive and high in demand. If you can own a place in these areas, the asset would have high value.

Koto-ku(江東区)
Unlike the first two areas, Koto ward has a good combination of residence, shopping, sightseeing and nature, despite its central location. Especially the land price of Toyosu has been on the increase because several Olympic Games will be held in the area. Along with infrastructure development, a rush to build condominiums has been continued. Many foreigners are eager to buy condominiums in the area. Popular tourist spot, Tsukiji fisher’s market is going to be transferred to Toyosu. After the relocation, Toyosu will become a new tourist spot as the center of Japanese food culture. The popularity of this area will be sustained even after the Tokyo Olympics. This is a great place to invest in.

Sep 15, 2017

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