Japan’s residential property market is slowly but surely regaining its lost glory, as it starts approaching the pre-crash levels it once enjoyed. Though many locals are still wary of investing in real estate, the country is quickly becoming a hotspot for foreign investment, and many opportunistic buyers are purchasing everything from vacation homes to luxury apartments.
The country’s real estate surge is most easily apparent in its largest city. Tokyo property is steadily on the rise, and there are many who are looking to seize the opportunity. When it comes to residential property investing, is Tokyo really the ideal place?
1. Excellent stability – The country boasts one of the largest GDPs in the world, and Tokyo hosts many of the world’s Fortune 500 company headquarters. This provides excellent economic security to investors and homeowners alike. Even now, real estate prices have yet to fully recover from the crash during the late 20th century, so there is plenty of room to grow.
2. Strong population – Although the country as a whole is still experiencing a population decline, that is not the case for metropolitan hubs like Tokyo. The city has an impressive population growth rate, and it is projected to keep increasing well into the future. Greater Tokyo has a population of almost 36 million people, a little bigger than all of Canada.
3. Landlord friendly – The vast majority of young professionals in Tokyo rent their homes, making it easy to find quality tenants. Most are willing to pay a premium for quality accommodation, and it is natural for tenants to stay for years once they are comfortable. There is a strong focus on maintaining a good relationship with the landlord, so you can be sure that they will take care of the property.
4. Premier construction – Japan is strongly aware of how dangerous natural disasters can be, and as a result, their construction companies never cut any corners. The country has some of the strictest building standards in the world, because it aims to prevent large scale property damage during major earthquakes.
Right now, Tokyo is easily one of the best cities in the world for real estate investors. Perhaps that will change in the near future, but more likely, it will stay as an excellent opportunity for those with the means to take advantage of it.