Tokyo, it seems, is attracting more and more foreign investors into its real estate business. An annual report by the global property-consulting firm, Jones Lang Salle, shows the city was the world’s fourth most famous choice for investment in real estate.
Tokyo is a metropolitan landscape that continues to flourish. With a productive business district and quality education and entertainment, families and single professionals seek some of the city’s best housing opportunities. Demand for apartments and condominiums in Tokyo, says Sumitomo-rd.com.sg, is what draws the investors in and keeps them hooked.
Technology in real estate
Earthquakes used to be a factor in demand. The Lehman brothers’ bankruptcy in 2008 left a negative impact on Tokyo’s real estate market. It continued to suffer when the Tohoku earthquake and tsunami struck in 2011. Many potential investors and buyers postponed and even cancelled their contracts, leaving estate agencies in a slump.
But this did not dampen the vigour of the people behind Tokyo residential and commercial properties. In fact, this plummet became the inspiration for many architects and developers to improve their craft. Within the past few years, they have built stronger structures and buildings that can withstand major earthquakes. Now, residents feel generally safer living in Tokyo.
Another factor that makes Tokyo a good investment target is the government’s enthusiasm to inflate the market by 2%, along with the Bank of Tokyo. To improve the state of the economy, the new Liberal Democratic Party government drafted a plan that involves all market sectors. With the revision of the consumption tax and other changes, it has generated a high yield between real estate profit and loaning rates.
At the moment, the city is experiencing some progress. Compared to other Asian countries, such as Singapore, Japanese real estate produces higher and more stable revenue. This makes it an attractive platform for local and foreign investors.
The major advantage of entering the Tokyo real estate business, despite the risks, is you get to earn a relatively stable income. And working with the right group, you can also gain valuable insights about the market.