I am studying a few reports on the current Japanese property market.
I will share my detailed analysis on this blog soon.
Over all, the Japanese market is steady.
According to the Government’s announcement in July 2017,
the national average standard price of land
rose by 0.5% compared to the previous year and it increased
for the second consecutive year.
Land for stores and hotels rose as the number of visitors to
Japan increased and redevelopment became a driving force in urban areas.
Ginza, Tokyo cracks a mark of price of the bubble period (late 80’s)
for the first time in 26 years.
Land prices of Ginza 2 chome in Tokyo exceeded the price during the bubble period.
However we need to note that while Tokyo and other mega cities are enjoying the growth,
about 60% of the properties in Japan dropped the price.
In other words, when you want to invest in Japan, you need to carefully find a property
which will appreciate over the next 10 years or so.
It is difficult to estimate the future without a crystal ball but you want to focus on your ways
to chose a property such as location, cash flow.
To maintain the neutral view , today I quickly show the latest news which press published over the last few months.
about the Japanese property market so that you can have your own view.
I show you only head lines not to infringe the copy right.
Naturally there are goods news and bad news.
July 22, 2017 Nikkei
“Last month, Japanese real estate developer Hulic sold its ownership of eighth-floor office space housed in Ginza Six,
the mixed-use shopping center that opened just two months earlier in Tokyo. The buyer, U.S. private equity firm GreenOak Real Estate,
paid more than 20 billion yen ($179 million) for the piece of property.”
September 20, 2017 Nikkei
“The average value of all lots examined in the big three metropolitan areas of Tokyo, Osaka and Nagoya rose 1.2%,
0.2 percentage point faster than a year earlier, with larger gains seen in all three. Though prices for the rest of the
country slumped 0.9%, the decline slowed by 0.3 point from the previous year, thanks to strong showings in
the regional hub cities of Sapporo, Sendai, Hiroshima and Fukuoka.”
Japan land price
October 3, 2017 FT
“Japan will see a “slight” increase in loan defaults as more people turn down inheritances that come
burdened with debts, ratings agency Moody’s predicts.”
December 8, 2017 Nikkei
“Norway’s enormous sovereign wealth fund and Japanese real estate company Tokyu Fudosan Holdings
will jointly acquire five commercial buildings in Tokyo for a total of 132.5 billion yen ($1.17 billion).”
Norway sovereign wealth fund
January 21, 2018 Nikkei
“Japanese real estate company Hulic and a partner have acquired the Hilton Tokyo Odaiba hotel for slightly over
60 billion yen ($541 million), aiming to capture lodging demand from international tourists in the run-up to
the 2020 Olympics.”
January 23, 2018 Nikkei
“Condominium prices in the greater Tokyo area are reaching levels not seen since Japan’s bubble economy 27 years ago
as major developers aggressively price new properties in popular areas amid a limited supply.”
January 31, 2018 FT
“Today, the town epitomises the key challenge facing Japan’s rural economy: adverse demographics.
As such it is a story whose relevance reaches well beyond the world’s third-biggest economy to
countries facing similar developments.”
Real estate investing consultant and author.
Toshihiko is currently writing a book about the real estate investing in Japan
for foreign investors.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and a MBA from Bond University in Australia