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.
Contemplating Purchasing
Akiya and Turning It into a Hotel?
Uncover the Legal Considerations
for Change of Use
If you’re mulling over the idea of buying an Akiya (unused house) in Japan
and converting it into a hotel, it’s crucial to familiarize yourself
with the legal considerations involved in modifying the property’s purpose.
In this blog post, we’ll highlight the primary aspects you need to
keep in mind before diving into this thrilling endeavor.
Stay up-to-date and optimize your investment by following our business
blog for more news and valuable insights.
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.
Have you ever considered becoming
a digital nomad in Japan?
As the safest country in the world, Japan offers a diverse range
of entertainment options,
an unrivalled food scene and a unique blend of tradition and innovation.
With relatively affordable rent and a world-class healthcare system,
Japan is an increasingly attractive destination for digital nomads looking to
immerse themselves in a new culture and way of life.
Moreover, the Japanese government is actively encouraging
digital nomads and foreign investors
Tax implications: When a non-resident sells
or rents out real estate in Japan
OLYMPUS DIGITAL CAMERA
(Case study)
In Japan, taxes are levied on residents (referred to as “residents”) regardless of nationality.
In this case, the income subject to taxation includes not only income generated within Japan
but also income from around the world.
Will Real Estate Prices Really Decline Long-term in Japan?
Based on the following four points, we will explore this issue.
In conclusion, while it is unclear what the long-term trend of real estate prices in Japan
as a whole will be, we can conclude that real estate prices in rural areas are likely to decline.
The relationship between population decline
and real estate prices In Japan
The population is declining, which is a contributing factor to falling real estate prices.
In particular, the decrease in population in rural areas is significant,
and it is expected that real estate prices will decline as demand decreases.
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%.
Record Foreign Investments
Boost Japan’s Hotel Sector
Foreign investors are increasingly acquiring Japanese hotels
due to the nation’s recovering tourism industry, weak currency,
and low interest rates. In the past 12 months, overseas buyers accounted
for 47% of the ¥494.3 billion ($3.7 billion) invested in hotel deals,
the highest proportion since 2014. Factors such as low rates, the weak yen,
and market stability have made Japanese real estate attractive
to global investors amid economic uncertainty.
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).