Hong Kong investors are looking for Japanese real estate, snapping up second homes on Tokyo's waterfront and looking for steady rental yields from studio apartments in smaller cities.
The Bank of Japan kept its ultra-easy policy while the Federal Reserve raised interest rates, which led to a rise in the US dollar and a fall in the Japanese currency.
The co- founder of Japan Hana Real Estate in Hong Kong said that Japan is a tourist destination and people can see themselves spending a lot of time there.
New developments ahead of the Olympic Games may provide a boost to the Japanese housing market. The price of new condominiums in Tokyo set a new record last year. Tokyo apartments are still cheaper per square meter than those in London, New York and Hong Kong.
Inquiries by Hong Kong residents about Japanese properties have increased by 70% and apartment sales have increased by 30%.
Last year, condo prices in Tokyo reached a new high.
The Real Estate Economic Institute is a research institute.
Recent high-end listings by international brokers include a mansion in Hiroo that is thought to be worth over 12 million dollars, and a house designed by Kengo Kuma that is thought to be worth over 5 million dollars. In the more moderate price range, Japan Hana is offering one to three-bedroom apartments in Tokyo's waterfront Shibaura district, some with views of Rainbow Bridge.
Many of his customers are looking for second homes in Tokyo and Osaka, as well as in Kyoto and Fukuoka, which are popular with tourists. He said that some people were interested in ski resorts in Hokkaido.
While some sellers are trying to lure wealthy investors with package tours that include helicopter rides and champagne, most buyers prefer smaller apartments that can be purchased in cash. Prospective buyers are wealthy individuals who are used to investing overseas and buying properties for long-term rental returns.
Grace Lau is a bank employee in Hong Kong. She bought a studio in Hong Kong in June of this year after seeing the fall of the Japanese currency. She said her latest purchase was almost 20% less than what she paid for a similar room, and that she might buy more if the dollar keeps falling.
If you put your money in the bank, there's no gain. This gives me a 5% yield.
Read more about it.
The apartment prices in Tokyo hit a new record.
There is a rush to buy among amateur traders.
The refusal to open border by Hong Kong is crushing the city's businesses.
The owner of a restaurant in Hong Kong and his wife bought a shop in Osaka about six months ago.
"Hong Kong's property market seems shaky, with so many people leaving, so I wanted to look somewhere else," he said. He already owned three properties in Japan and visited the country frequently before the Pandemic, so he was comfortable using online street views to inspect his newest purchase.
Rental yields in Japan can be as high as 6 percent, while in Hong Kong they can be as low as 3%. The average yield on prime residences in Singapore and London is under 3%.
A tendency for the value of buildings to depreciate quickly is one of the risks for Japan. The Pandemic may be difficult for foreign investors to assess because it has changed people's lifestyles and preferences.
There has been a shift from the city center to the suburbs. He said it was hard to read what demand would be after Covid.
Even if few of them qualify for Japan's super-low mortgage rates, Hong Kongers still see opportunities in a housing market that has no restrictions on foreign buying.
Investment in Japanese real estate is expected to increase once border controls are loosened.
If people want to buy in Japan, they will visit more often than not.
Grace Huang and Yasutaka Tamura assisted with the project.
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