The Japanese property market is booming once again, as Chinese property investors shift their attention from the US.
A rising number of Chinese and other overseas property investors are now looking at the Japanese property market, and in particular Tokyo ahead of next year’s Olympic Games.
Property portal Juwai has said that its data showed interest by Chinese buyers in the Tokyo property market had risen by a factor of 10 in the first quarter, versus the number of inquiries made a year earlier.
While US property has previously been one of the most popular investments for Chinese nationals, they are now put off by the trade war with the US but are confident about the growth potential in the Japanese property market.
Tokyo property prices rose by an average of 7 to 10 per cent last year while in Osaka they jumped 12 per cent, according to Japan’s Ministry of Land, Infrastructure and Transport.
With the imminent Olympic Games due in Tokyo next year, it is expected that property prices in the Japanese market could rise by 10 to 20 per cent over the next year, particularly around Tokyo.
Aside from the trade war with the US, Chinese property investors have been put off other destinations such as Canada and Australia due to punitive tax increases imposed on overseas property investors.
In addition to Tokyo, Osaka is also in huge demand. Authorities in Osaka plan to select a preferred developer for an integrated casino resort next year, as well as becoming host city to Expo 2025, making the Japanese port city very attractive to overseas property investors.
New Japanese visa rules which took effect on April 1 this year have also made it easier for foreign workers to enter the country, reflecting a major policy shift from Tokyo’s traditionally strict rules on labour and immigration.
With increasing Chinese interest there could be opportunities for other overseas property investors to benefit in a booming Japanese property market.