Investing in Japan’s Real Estate Renaissance:
Uncovering Opportunities in Tokyo and Beyond
In the ever-evolving landscape of global real estate investment,
it’s essential to keep a close eye on emerging trends and opportunities.
One such opportunity that has recently come to light is the significant growth
in real estate investment in Japan’s capital region.
The Japanese Housing Market: Is it Time to Buy?
The prices of newly built standalone homes and condominiums in Japan
have been rising steadily for the past few years,
but there is a growing concern that the market may
be reaching a turning point.
The prices of newly built standalone homes and condominiums
have been rising steadily for the past few years.
The price of used condominiums has increased by more than 70% over 10 years.
The rise in condominium prices, especially in the metropolitan area, continues.
However, there is a growing concern that the market may be reaching a turning point.
Investing in Japan’s Ageing Condominiums:
Opportunities and Insights for
Foreign Investors Amid Legal Changes
Are you a foreign investor interested
in Japan’s real estate market?
As a leading real estate agent for foreign investors, we’re here to provide you with the latest updates
and insights into the industry.
Today, we’re discussing the Japanese government’s proposed amendments
to the Condominium Ownership Act and what it could mean for you as a potential investor.
The Japanese government is considering amending the Condominium Ownership Act by the fiscal year 2024,
Discovering Lucrative Opportunities in Japanese Real Estate
for High-Net-Worth Investors
Introduction:
Japan has long been an attractive destination for high-net-worth individuals
who appreciate its rich culture, modern cities, and stunning landscapes.
As the yen continues to depreciate and real estate prices remain relatively low compared to other global cities,
now is the perfect time for investors with a net worth of 1-2 million
US dollars to explore opportunities in the Japanese property market.
Prime Locations:
While Tokyo is the most popular choice for foreign investors,
other metropolitan areas such as Osaka and Nagoya also offer attractive investment prospects.
For those interested in resort properties, Hokkaido and Okinawa are becoming increasingly popular choices.
Example Properties in Tokyo:
Minato-ku, Tokyo: A luxurious 2-bedroom apartment in the upscale Minato-ku district offers
investors a taste of cosmopolitan living. With a price tag of around $1 million,
the apartment offers a potential rental yield of 4-5%.
Shibuya-ku, Tokyo: A modern one-bedroom apartment in the vibrant Shibuya-ku area offers
a more affordable investment option at around $500,000.
The potential rental yield for this property is approximately 3-4%.
Revolutionizing Urban Living:
SETAGAYA Qs-GARDEN Unveils
a Multigenerational Community
for Enhanced Well-Being
On March 27th, 2023, five large companies, including Dai-ichi Life Insurance,
Marubeni Urban Development, Aioi Nissay Housing, NTT Urban Development,
and Nomura Real Estate announced the opening of “SETAGAYA Qs-GARDEN”
in Setagaya, Tokyo.
The project aims to create a community that promotes the well-being of its residents
by constructing multi-generational housing,
sports facilities, and community centres on a 9-hectare site owned
by Dai-ichi Life Insurance.
Rising Used Condominium Prices in Tokyo and Major Japanese Metropolitan Areas
Tokyo Kantei Press Released on March 23, 2023
Major Cities in the Three Major Metropolitan Areas: Monthly Trends in Used Condominium Prices (70 sqm)
In February, used condominium prices in the Tokyo metropolitan area increased
by 0.4% compared to the previous month, reaching 48.66 million yen,
marking the third consecutive month of increase.
In central Tokyo, prices once again surpassed the 100 million yen mark.
The average prices in the Kinki and Chubu regions also continued to rise modestly,
with no significant downward movement seen in the market.
In February 2023, used condominium prices in the Tokyo metropolitan area
rose for the third consecutive month, with a slight increase of 0.4% compared to the previous month,
reaching 48.66 million yen.
When looking at the data by prefecture, Tokyo saw an increase of 0.7% to 64.41 million yen,
surpassing the record high set in December of the previous year.
In Kanagawa Prefecture (+0.4%, 36.68 million yen), prices continued to rise compared
to the previous month, while in Chiba Prefecture (+1.7%, 28.29 million yen),
prices have been on an upward trend since April of the previous year.
On the other hand, prices in Saitama Prefecture decreased slightly by 0.4% to 30.49 million yen,
marking the first decline in six months.
The average price in the Kinki region increased for the first time in two months,
with a slight increase of 0.2% to 29.14 million yen, due to the strength of the Osaka area.
In Osaka Prefecture, the price showed a similar movement with a 0.2% increase to 31.28 million yen,
but it did not surpass the level reached in December of the previous year.
Rakumachi, a real estate website in Japan, conducted market research for the first quarter of 2023
and found that the prices of all types of investment properties in Japan have increased.
(Not property for living)
The average price of one-room apartments increased to 74.95 million yen,
the average price of one-building apartments rose to 277.9 million yen,
and the average price of condominiums rose to 18.81 million yen.
One-room apartments had a yield of 8.98%（gross yield), while one-building apartments had a yield of 7.52%(gross yield),
and condominiums had a yield of 6.87% (gross yield).
Competitive Landscape in Japan’s
Home Loan Industry
: Unraveling the Impact of
Internet-Only Banks
The Japanese home loan market is witnessing fierce competition, with internet-only banks
such as au Jibun Bank and SBI Sumishin Net Bank leading the charge.
These banks leverage their lower operating costs to offer attractive interest rates
on variable-rate home loans.
Recently, au Jibun Bank expanded its preferential rates, reaching as low as 0.196%
for some customers. Meanwhile, SBI Sumishin Net Bank,
which has a market share of around 5%, reduced its refinancing rate to 0.299%.
Traditional banks are also competing by lowering their expenses through digitization
and offering competitive interest rates.
(Naeba ski resort in Niigata)
Sparkling ?
There are many resort condos in Yuzawa in Niigata for sale at a very reasonable price.
I found an interesting article about resort condos and would like to share the summary with you today.
After the burst of the bubble, the residents of the condominiums became elderly.
Yuzawa Town, Niigata Prefecture, the Joetsu Shinkansen entered Ueno in 1985, and the entire Kanetsu Expressway was opened, becoming a tourist destination that attracts 10 million people annually.
You can enjoy skiing and hot springs effortlessly from the Tokyo metropolitan area.
In the bubble economy, 58 resort condominiums were built by 1993 with a total of approximately 15,000 units.
According to real estate information company Tokyo Kantei, there are about 80,000 resort condominiums nationwide.
Yuzawa accounts for close to 20%.
However, the ski boom has gone, and prices have fallen due to oversupply.
About 30 years since the bubble, condominium users have also changed significantly.
According to the town, out of over 8000 townspeople as of April 2016, more than 1000 people registered the current address in apartments.
It accounts for 12% of the townspeople.
What is the purpose of the city planning law ?
The city planning law which is set by the Ministry of land infrastructure transport and tourism (MLIT)
exists to regulate urban development.
The law divide Japan into mainly two parts :
1.The city planning area which is regulated by the city planning law
2. The non-city planning area which is not regulated by this law
City planning area is mainly divided into urbanization promotion areas where development is promoted and urbanization restricted areas where the development is restricted.
Urbanization restricted areas consist of agricultural, forestry and fishery projects.
Urbanization restricted areas are not allowed to build residential, office and retail properties.
*
For example, if you want buy a land in the agricultural areas, you may not able to build your own house.
Don’t forget to check the relevant law and regulation before you purchase such land.