Buying Real Estate

Good opportunities ? : How does the booming inbound tourism impact the property market ?

Japan is enjoying very healthy growth of inbound tourism.The number of inbound tourists, which stood only at 8.36 million in 2012, set record highs for the sixth year in a row. It continues to thrive as a record 28.7 million tourists visited Japan in 2017, up 19 % from the previous year. In 2016, it was up 21 % and in 2015, up 47 %.
Visitors from China, South Korea, Taiwan and Hong Kong account for more than 70 % of the total number.
The number of Chinese travelers grew 15% to 7.35 million, South Korea increased 40 % to 7.14 million.
2018 January number will be announced on February 16 but apparently it is keeping the nation on track for the government’s target of boosting the annual number of visitors to 40 million in 2020.
There are some challenges, however, that must be overcome, such as a tight supply of accommodations that cater to overseas guests and a heavy concentration of visitors from East Asia.
Further efforts should be made to realize the full potential of inbound tourism as one of the nation’s key growth industries including welcoming more American and European visitors
who have a tendency to stay longer with bigger spending budgets.
(Chinese tourists spend less than Europeans and Americans on accommodations and foods)

Japanese people are regularly talking about the latest inbound tourism booming but how does the industry look more in the global perspective ?

Is only Japan performing well ?
In order to analyze the Japan in the global market, let’s look at the 2017 report published by UNWTO (UN World Tourism Organization).
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Where you should buy your house in Tokyo ?

Do you want to buy a house in Tokyo ? Which area do you want to buy your property  ?
I believe understanding the location is a key to being successful
with buying a house (or apartment).

In Japanese big cities such as greater Tokyo, Osaka, Nagoya,
people do not commute by car but by train or subway.
They get on and off train every single day.
If the number of residents increases, the station nearby flourishes and
the vibrancy is born in the town.
On the other hand, if the number of station users decreases, we could see the
recent issues like “vacant house problem”.
Empty houses problems are even becoming serious  in the area of Denenchofu station, Tokyu Toyoko Line,
which has been admired as said a prestigious residential area.
This is because the wealthy people who live in Denenchofu are moving into
high-rise apartments in the center of Tokyo.
When buying real estate in Tokyo,  it is extremely important to check the trend of
passengers of the nearest station.
Unlike large cities in the US and Europe, there are few business people
who commute to work by car in Tokyo.
The convenience of commuting to work and the convenience of shopping are directly
linked to the value of real estate in Tokyo.
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