Real Estate News

September 23 2015

Growth in Japanese Property Investments

We would like to continue to send you "Japan Real Estate Investment News" our newsletter featuring advice regarding Tokyo's real estate news and trends on a regular basis.

(Kenji Okazaki)
【Writer's Profile】
Marimo Investments
International Investment Sales Division

Growth in Japanese Property Investments

In Real Estate Economic Institute Co., Ltd.’s recent “Condominium Market Trends” report, in the first half of this year (Jan-Jun 2015), investment condominium supply decreased 18.1% while average unit price increased 3.3% compared with 2014.

With increases in new condominium prices, second hand house prices are also on the rise, approaching prices seen prior to the collapse of the Lehman Brothers. “Rise of construction cost” is said to be the primary cause for this.

Along with the upcoming 2020 Tokyo Olympics, the tumbling Chinese stock market and its effect on South East Asia property prices have helped propel “Tokyo Real Estate” to the front of Asian investors’ minds. One such investor has said that, “Now, Japan is a great place to invest.”

It is our view that not all Tokyo real estate investments are good investments. One major risk is Japan’s declining population. If there is no one to rent your condominium, it becomes nothing but a box of concrete. Having reached its peak in 2008, Japan’s population is slowly declining and Japan is already facing problems with housing vacancies.

Therefore, it is important to know which areas to invest in. Is your focus on income from rent or from sales? Understanding this is crucial in determining where to focus your attention - and ultimately how successful your investments will be.

We will periodically distribute useful information on the Japanese real estate market. If you have any requests, please let us know.

Lastly, as we have been receiving questions concerning real estate and taxes in Japan, we have updated our website with relevant answers.

The Japanese Finance System :

[Related Links] [ November 15 2015 ] Negative Aspects of Japanese Properties Market! [ September 8 2015 ] Abenomics and Property Asset Value

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* Our multinational team accepts both written and spoken queries in English and provides language support for speakers of Mandarin and Bahasa Malaysia.

Each of us investment team members are expert professionals at property investment advisory, with an acquired know-how of Japanese property investment. We are more than happy to support you by helping you develop your ideas about the properties in the pursuit of your goals. Also, our multinational team welcomes any inquires in English and can provide additional support for speakers of Mandarin and Bahasa Melayu.