Reviving Japan’s Countryside:
How Foreign Investors are Transforming Vacant Houses
Are you an overseas investor or foreign national intrigued by the charm and allure of traditional Japanese homes?
If so, there is an exciting opportunity waiting for you.
As the appreciation for traditional Japanese architecture grows,
a promising trend is emerging that not only provides a unique investment opportunity
but also contributes to solving a significant societal issue in Japan – vacant houses.
Foreign buyers are increasingly attracted to these vacant, traditionally styled homes,
often located in the heart of Japan’s beautiful countryside.
Fueled by the rich cultural heritage encapsulated in these properties and a relatively lower cost
due to the weaker yen, this trend provides an opportunity for foreign investors to own a slice of authentic Japanese culture.
Understanding the wealth distribution across the globe
can offer invaluable insights into potential opportunities
and trends in the real estate market.
That’s why today, we’re turning our spotlight on a recent report by Henley & Partners, a British consulting firm,
which ranks cities based on their millionaire populations.
Particularly interesting for us is the position of Tokyo, Japan’s bustling capital, in this global landscape.
As we unpack these insights, we’ll consider what this means for real estate investment in Japan,
and how these trends might shape our strategies moving forward.
New Home Prices in Japan Continue to Rise,
but Demand is Weakening
The average asking price for small-scale newly built detached houses in Tokyo 23 wards was 7031 million yen in April,
an increase of 0.7% from the previous month.
This is the highest price since the statistics started in April 2014.
The rise in construction material costs and labour costs has been passed on to home buyers,
and prices have continued to rise. However, housing demand is weakening due to rising prices.
A survey by Tokyo Kantei found that the number of people who are interested
in buying a new home has decreased by 10% from the previous year.
This is due to a number of factors, including the rising cost of living,
the uncertainty of the economy, and the war in Ukraine.
Are you an investor exploring alternative
real estate investment opportunities in Asia?
The recent changes in Singapore’s property tax regulations may prompt you to look elsewhere
for promising investments.
As a Japanese real estate agent specializing in assisting foreign investors,
I’m here to help you navigate this changing landscape and
discover the potential of Japan’s real estate market.
Invest in Japan’s Cultural Heritage:
How Foreign Buyers Can Transform
Abandoned Akiya Homes
into Profitable Ventures
As Japan’s population declines and properties go unclaimed, an emerging segment of buyers is seeking out
rural architecture in need of renovation.
There are about 8.5 million abandoned houses, or akiya, across Japan,
accounting for roughly 14% of the country’s housing stock.
This number is expected to rise as the population continues to shrink.
According to an article in NYT, Australian software developer Jaya Thursfield and his Japanese-born wife,
Chihiro, purchased an akiya for 3 million yen (about $23,000) after relocating from London to Japan.
Discovering Lucrative Opportunities in Japanese Real Estate
for High-Net-Worth Investors
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.
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%.
The Spectacular Launch of
Tokyu Kabukicho Tower’s
Tokyu Kabukicho Tower, the latest colossal entertainment complex
located in the heart of Tokyo’s bustling Shinjuku district,
celebrated its grand opening on April 14th with a ribbon-cutting ceremony.
The state-of-the-art complex boasts a total of 48 above-ground and five underground floors,
reaching a staggering height of approximately 225 meters.
The tower is a symbol of modern luxury, offering guests an array of exceptional facilities,
including the lavish BELLUSTAR TOKYO Hotel, the contemporary HOTEL GROOVE SHINJUKU,
the captivating THEATER MILANO-Za, the premium 109 Cinemas Shinjuku,
and the vibrant live hall, Zepp Shinjuku (TOKYO). In addition to these core offerings,
the complex provides an extensive selection of dining options,
amusement experiences, and thrilling attractions.
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.