Japan is preparing for the 2020 Olympics in a major way. Many are confident that this will improve Japan real estate prices in many areas. The Bank of Japan estimates economically the Olympics should bring in around ¥30 trillion ($250 billion dollars). This is many times more than the estimate of the costs to prepare for and run the event.
The biggest impact to property price is mostly to be felt in Tokyo where prices have already begun to increase but it’s expected that other areas including Osaka, Fukuoka and other larger cities to also increase.
Chinese interest in Japan Real Estate
In May this year, China Daily Asia reported that more Chinese and Hong Investors are investing in Japanese real estate. This is occuring as the country prepares for the 2020 Olympics. The reasoning is that investors are preparing to take advantage of the capital appreciation potential in the property sector as Tokyo’s population continues to increase.
According to financial services firm Jones Lang LaSalle (JLL), vacancies for top-grade homes in Tokyo hit their lowest level in the fourth quarter last year since the 2008 global financial crisis. Increases in both rental and property values have occured.
Property values could increase anywhere from 20 –30% between now and 2020.
Tourism and Japan Real Estate
Tourism has been booming in Japan in recent years and this is set to increase especially as the countries gears up for the Olympics. Holidaymakers in Hong Kong, Taiwan and China view Japan as one of the most popular destinations for holiday breaks, shopping and tasting Japanese food. Now these same tourists are finding that Japan real estate is also a popular opportunity. As tourism increases Japan is also expecting property prices to increase also.
Have you thought about investing in Japan Real Estate? Now may be the best time as it gets closer to the hosting of the Olympics.
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