Japan on the up.
The stock market is up. Next year is the Rugby World cup. And of course, everyone is gearing up for the Olympics in 2020.
Local train company going Global.
In the past twenty years, there has never been a better time to invest in Japan. We see it here every day but forget that most of our investors live overseas. We came across an article from Deal Street Asia which highlights Japan’s resurgence perfectly. JR Kyushu, or Japan Railways Kyushu, are using some of their profits. Entering the Thai real estate market with a deal to purchase 429 apartments in Bangkok. The deal will cost JR Kyushu US$90 million with a further $100 million going into refurbishment, no small deal.
Bumper profits make deep pockets.
Keep in mind that JR Kyushu is merely a railway company in the south of Japan. The benefits of inbound tourism across the country have been enormous. Companies like JR Kyushu have benefited from bumper profits as 29 million tourists flood the country. Spending within Japan has jumped significantly in the past 5 years. Japanese companies with full wallets and are going shopping for bargains overseas.
History repeating itself.
This could be a throwback to the bubble days. Days when Japanese companies bought foreign assets like they were going out of fashion. Growing up in Britain in the 80s Japanese companies bought the local golf course, hotels, and shopping centers. It seems like history is repeating itself.
We have a different view than the Japanese companies. At JPI we prefer to invest IN Japan where returns are good, tenants respectful and investments stable. We wish JR Kyushu well in their foreign mission. Hopefully, they purchase more and more overseas properties, leaving the Japanese ones to us here at Japan Property Investments.