Real Estate News

November 15 2015

Negative Aspects of Japanese Properties Market!

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

Negative Aspects of Japanese Properties Market!

As a condominium provider nationwide, at Marimo we have the latest news on Japanese properties market. In this article, it is sad but we feel it is our obligation to give away some negative aspects of Japanese property investments.

That is that the decline of population (especially households) will have a big impact on property price.

Looking back on history, number of household in 1970 was 29,890,000. In 1991, it exploded into 40,510,000, meaning in just 21 years, the household grew 10,620,000 (36%). Together with the household the land price grew 16% annually. And now in 2015 household has grown to 50,600,000 but it is expected to decline rapidly.

Especially in the countryside, with both the population and household declining, the price of houses will go down with the demand, price of shop and office will go down with the decrease in workforce, making a catastrophic drop in price all together.

Negative Aspects of Japanese Properties Market!

Tokyo and Okinawa is said to be the only two prefectures where the household will increase while nationwide household will decrease.

We believe that the number of household is the key factor in Japanese property investment.

So here’s the question.
“Should we reserve from investing in Japanese Property?”
“Is Japanese property investment attractive?”

It is our opinion that in the property investment market around the globe, there is no such thing as a country or city that can guarantee 100% growth.

But Nikkei (No1 Japanese Economy newspaper) said in its October 8th article that one of world’s biggest government fund, Government Pension Fund of Norway (Asset 100trillionYen), will be investing in Japanese property.

Government Pension Fund of Norway is operated by Norges Bank and with its great reputation for its performance, it is emphasized that this move will give a great impact globally.

At Marimo’s International Properties Division we have been introducing various properties in Tokyo to many foreign investors weekly, and feel the strong effect of the upcoming 2020 Olympics.

As one of the only prefectures where the household keeps to grow, investing in “Tokyo”, is an attractive market.

If you have any questions or requests regarding Japanese market or properties, please feel free to contact us.

[Related Links] [ January 14 2016 ] Azabu-juban station [ September 23 2015 ] Growth in Japanese Property Investments

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