Cheap Tokyo real estate prices attracting Asian investors

As the media continue to highlight the sharp rise in the number of international investors entering the Japanese and especially Tokyo real estate markets, Hikari Homes believes the trend is just gaining momentum. The driving forces that have seen sales swell over the last 12 months look set to remain in place over the longer term, building on what canny investors have known for a long time – that good returns on investment in Japanese property are generated by some of the most stable and long-term tenants in the world. Together with low property prices compared to most major capital cities around the world, they make the Japanese market a very attractive proposition.

Over the ‘lost decade and a half’ of the Japanese economy, land and real estate prices have fallen to a level that makes them a very attractive investment, especially for investors from Taiwan, Singapore, Hong Kong and mainland China. Global real estate services firm Jones Lang LaSalle says prices in Tokyo range from around 120,000 yen to 150,000 yen per square foot, compared to 280,000 yen to 400,000 yen in Hong Kong, and 200,000 yen to 250,000 yen in Singapore. Add in the quality of the buildings, the attention to detail in short and long-term maintenance, the falling yen and increased economic confidence generated by Abenomics, and it is clear that real estate prices have lifted off the bottom and are set to generate capital gains on top of the returns generated by rental income.

Comments Hikari Homes CEO Kazuhiro Okuda: “We saw the turnaround coming and have geared our services to international investors to enable them to participate on a level playing field with local buyers. Whereas, just 12 months ago it could take 3 months to close a deal with a buyer, today a week is a long time. To meet this compressed timeline, we have further invested in technology and people, to enable us to offer up-to-date information, and streamline our services to meet the demands of this dynamic market.”

With a constantly updated portfolio of residential, commercial and resort properties, and Turnkey Buying and Property Management Services, Hikari Homes is well positioned to help international investors and buyers of lifestyle properties in Japan to acquire property in Japan. Okuda-san adds: “We are delighted by the number of repeat buyers looking for their second and third properties in Japan, a recognition of both the return on investment on property ownership in Japan and the quality of our services. We look forward to assisting international investors wanting to enter this exciting market.”