Japan

What You Need to Know About the Property Market in Osaka

If you’ve been following our work, then you know that the Japanese property market is looking bright. Our previous articles have covered the reasons why we’re optimistic, which is why this article will focus on one particular city that’s caught our eye: Osaka.

The port city of Osaka stands out as a prime location for property investment, and since it pays to be informed, have a look at the following must-know details about the area. If you’re interested in growing your assets, you might want to take some notes.

The Exceptional Growth of Osaka Real Estate

Let’s get the most important point out of the way first: the Osaka real estate market is experiencing growth at a stellar rate. Commercial real estate investment grew to the tune of over 35% from 2016 to 2017, and is projected to continue to grow for at least the next two years.

There are a handful of contributing factors that continue to drive this growth. First are the numerous government developments in the region, such as the Umekita project centered around Osaka’s rail station, and the 390 hectare, man-made island called Yumeshima, which is situated near the port of Osaka and is planned to host a fully integrated resort once finished.

Second is the shift of investors’ focus from the established and saturated Tokyo market to Osaka’s up-and-coming regional market. In 2017, Osaka’s share of investments coming into Japan increased to 16%, while Tokyo’s remained steady. Credit for this must go to Osaka’s land becoming more and more profitable. According to the 2017 ,annual government land survey, land prices in Osaka increased by 4.7%, whereas Tokyo only rose by 3.7%. In fact, the average commercial land prices in Osaka are the second highest in Japan, only falling behind (you guessed it) the country’s capital city.

picture1.jpgImage from Inside Osaka

Finally, there is a huge demand for land within Osaka itself. Due to its limited office supply and land area, Osaka is the 2nd most densely populated region in Japan (again only being beaten by Tokyo). Despite this, Osaka contains over 200 thousand foreign residents beating out over 40 other prefectures in terms of immigrant population.

All of these factors have manifested in the costs city’s cost of living. Osaka ranks 49th out of 447 cities in the world in terms of cost of living, with the average cost to rent an apartment ranging from around 51,846 to 131,250 yen (460 – 1164 USD) depending on location with respect to the city center and the number of bedrooms. Likewise, the cost to own an apartment unit ranges from 400,000 to 500,000 yen per square meter (3546 – 4432 USD).

Neighborhoods on the Rise

While Osaka as a whole continues to reach greater heights, here are some of the notable neighborhoods that are getting there faster than the rest.

Umekita

As previously mentioned, the Japanese government’s Umekita project is currently underway. It aims to make the area a “collective center of knowledge, uniting global technology and awareness to create new value.”

Located in the heart of Osaka, this area is expected to become a hub for tourists and locals alike, featuring convention centers, hotels, offices, and more. Being centered around Osaka’s rail station, Umekita is particularly attractive to local and foreign entrepreneurs given its designation as a special zone by the government which entails a plethora of support and potential tax incentives to businesses that meet certain conditions.

It is also planned to be a green area, with approximately 8 hectares allotted for urban greenery. The Japanese government’s plans to combine nature with innovation is expected to turn the Umekita area into a playground for researchers and corporations both local and foreign.

picture2.jpgImage from Cafe Company

Nakanoshima

Currently being redeveloped, Nakanoshima is projected to become a meeting point for art, culture, science, and technology. An island measuring 3 kilometers east to west with approximately 50 hectares worth of area, Nakanoshima is the heart of politics, business, and culture within Osaka.

Once its redevelopment is completed, the island hopes to house a museum-complex zone as well as a global communication zone. These futuristic zones perfectly complement the numerous convention and cultural facilities already present in Nakanoshima, making it a sector that tourists and foreign businessmen will adore.

Entering the Osaka Real Estate Market

We’re sure that obtaining land in Osaka is a very tempting prospect. Luckily for smaller investors, it’s not that difficult to enter –you don’t need the weight of a whole investment firm to join in on the action.

Japan has no restrictions regarding real estate ownership, be it land or a building. This means that any foreigner (regardless of their visa status) has the right to purchase property in Japan, so the only real hurdles you’ll face when trying to buy land are financial ones. These purchases however do not entitle foreigners to special rights or visas, so if you’re planning to live in Osaka you’ll still have to settle those papers.

In the event that you do manage to buy real estate in Osaka, you will have to submit a notification form containing your full name and the cost of your acquisition to the Minister of Finance through the Bank of Japan within 20 days of your purchase.

This report isn’t necessary however if:

  • You acquired real estate with the intent of you or your relatives living in it
  • You run a non-profit in Japan and you acquired real estate for business activities
  • You plan to use the real estate for your own business’ office
  • You purchased the real estate from another non-resident.

The notification form is formally known as Report Format Style 22, and is one of the requirements presented in the Foreign Exchange and Foreign Trade Control Act, Article 55-3

Conclusion

Osaka is a shining example of why investors are confident in Japan’s real estate market. Short-term investors have the possibility of liquidating with a significant profit margin, and longer-term investors with the sense to buy into quality office and residential structures are likely to collect dividends from rent for quite a while.

Any venture is risky, but if you’re looking to diversify your personal finances and earn from the world’s rising stars, bet on Osaka.

Japan

4 Good Reasons to Invest in Property in Japan

Those with the money to invest in an overseas real estate market have a whole world of options to choose from—and we mean that literally. Shopping for an investment property in your home country can be difficult, but going international is guaranteed to be a herculean task if you lack direction.

Every country’s property market has its pros and cons, but we’ll be using this article to make a strong case for why you should invest in real estate in the Land of the Rising Sun.

1. The Japanese Property Market is Growing

We covered the figures behind the Japanese property market in our last article, so this first entry will be a bit of a recap.

To cut a long story short, things are looking optimistic for real estate in Japan’s urban centers. Prices have climbed significantly in the last decade thanks to the Abe government and its expansionary policies, with low interest rates, a devalued yen, and a pivot towards greater infrastructure spending setting the stage for the real estate sector’s steady growth.

Screenshot 2018-12-18 at 12.38.24.pngImage from Japan Property Central

Their government’s efforts are compounded by a range of social changes, such as the rising number of dual income households and the droves of Japanese youths choosing life in the city over a rural existence. Demand for living spaces close to the country’s commercial hubs are facing a steady uptick, which could optimistically last well into the future.

Billions of dollars are flowing into Japan, all driven by the same, high level of optimism in the country’s future. So don’t take our word for it: the world’s tycoons are in agreement that if you can invest in property in Japan, you definitely should.

2. Tourism is Booming

Japan remains to be a popular destination for tourists of all backgrounds.

There’s been a steady upward trend in the volume of foreign visitors to Japan over the course of this decade, with the numbers expected to climb even higher as the island nation consolidates gains from its 2012 Tourism Nation Promotion Basic Plan. In 2018 alone, Japan managed to attract upwards of 28 million foreign tourists—that’s 20 million more visitors than in 2010!

Japan’s appeal spans far and wide, thanks to a combination of it’s government’s efforts to entice new guests and the influence of its culture. People fly in to visit heritage sites, immerse in popular culture, and witness Japan’s orderly society firsthand.

For property investors, all of this means that rental properties are particularly viable investments. Whether you’re aiming for a share of the traditional luxury housing market (ex. a high-end hotel) or a facility for extended stays (ex. an Airbnb unit), you can rest assured of high demand for rental space in Japan and a reliable source of passive income.

Screenshot 2018-12-18 at 12.40.10Image from JTB Tourism Research & Consulting Co.

3. The 2020 Tokyo Olympic Games are Drawing Closer

In case you missed it, Japan is set to host the 2020 Summer Olympics. Beyond the prestige and media attention this will undoubtedly bring to the country, speculators are expecting a massive spike in demand for accommodations.

The short to medium-term benefits of hosting the Olympics are well-documented. Host cities enjoy significant increases in local spending on food, lodgings, and other goods and services patronized by tourists. In a little over a year’s time, Tokyo will be no different.

Buying into the property market as early as now ensures two things: cheaper access to what will very soon become prized real estate, and a share of the windfall once the event comes around. After the event has run its course, investors have the option of cashing out or hanging on—depending on their appetite for risk and their faith in Japan’s plans for sustainability after the games.

4. Barriers to Entry are Shrinking

It was easy enough to invest in property in Japan to begin with, what with the country’s lack of restrictions on foreign ownership of property. However, as technology advances and financial tools become more convenient, owning Japanese real estate can be as easy as buying a movie ticket online.

Blockchain technology provides investors with a safe way of purchasing and proving ownership of all manner of goods and services –in the case of platforms like Bit of Property, real estate. What’s more, today’s aspiring property owners can benefit from regular and secure dividend payments, such as returns from rent, thanks to blockchain.

Conclusion

Japan is a boon for investors looking to diversify their assets and earn from one of the world’s most optimistic markets. Put your idle assets to work for you, and invest in Japanese real estate before the opportunity passes you by.

Japan

The Residential Real Estate Market in Japan: Why Now is the Time to Buy?

Property investors are flocking to secure a piece of Japan’s real estate industry ahead of the 2020 Tokyo Olympics.

Naturally, this means a lot of activity by larger, wealthier, and more well-connected investors —however, smaller buyers may soon find themselves empowered to ride the wave thanks to recent developments in technology.

In this article, we’ll be explaining the reasons behind the health and appeal of the real estate market in Japan, and how investors of all sizes and backgrounds can share in the gains.

“Abenomics” and the Three Arrows of Progress

When Japanese Prime Minister Shinzo Abe took office in 2012, he set a new direction for the country’s economic fate. Abe’s expansionary plans, dubbed “Abenomics”, aimed to revitalize Japan’s markets through the use of three measures (“three arrows”) of policy: currency devaluation, greater infrastructure spending, and quantitative easing.

By weakening the yen, lowering exchange rates, and jump-starting the industries for real estate and construction, Abenomics turned Japan into fertile ground for local and international investors.

While the overall impact of Abenomics has met its fair share of criticism, the housing sector has undoubtedly won big. Slow overall growth has done little to stop the steady rise in housing prices over the past few years. If you bought a condominium unit in Tokyo back in 2006, for example, then the value of your investment would have grown by nearly 75% today.

Screenshot 2018-12-03 at 13.20.56.png

Image from Global Property Guide

Low interest rates and an exceptionally friendly currency make investment appealing, but ultimately, it was the focus on infrastructure that sealed the deal for foreigners looking to profit off of the Japanese experiment.

Local Demand for Real Estate

Of course, government intervention isn’t the only driver of growth in Japan’s housing sector. Local demand has shifted in the past few years, with more people moving to the country’s urban centers.

Despite its enduring rural tradition, a growing number of Japanese youths heed the call of the city: leaving fields and rivers for streetlights and bullet trains. This decline in rural living is a major force in raising the prices of houses, apartments, and condominiums in the city.

Likewise, an increase in the number of double-income households sees more families looking to live closer to the office—aiming for housing within Japan’s numerous commercial hubs instead of facing the challenges of the daily commute. The desire to work close to home is universal, and Japan is experiencing a surge in demand for more accessible living spaces to the benefit of those with the opportunity to provide them.

Finally, demand for housing is on the rise as an externality of the increase in foreign investment that we explained in the last section. As more foreign businesses set up shop on Japanese soil, executives and employees find themselves needing somewhere to stay. By boosting the demand for housing, investors and the people they’ve employed make Japan all the more lucrative for capitalists looking to join in on the fun.

Tokyo 2020

There’s one more force propelling the market for housing in Japan, and it’s the most dramatic by far. With the Japanese capital set to host the Summer Olympics in 2020, luxury housing projects (e.g. hotels, serviced apartments) are on the rise. The Japanese, alongside foreigners with the money and interest, are laying the groundwork for the most well-attended and high-valued global event until Paris hosts the competition in 2024.

IMG_0204-1024x573

Image from Mark Szelitowski

Billions of dollars are on the move, and all roads lead to Japan. The country has seen massive deals moving at high speeds in recent times, and it shows no signs of slowing down as the clock ticks towards 2020. Norway’s government pension fund, for instance, has partnered with Tokyu Fudosan to invest roughly $1.2bn in five different commercial buildings ahead of the global event.

Whether the gains last beyond Olympics season is anyone’s guess, but the staggering medium-term growth between now and the competition proper are a sure deal.

Buying Into Japanese Real Estate

Anyone with the means to invest in housing in Japan is moving to get in on the action. This means the stereotypical club of businessmen and corporations shuffling numbers around to the tune of billions: more of the same old song and dance.

However, recent advances in blockchain technology have inspired the personal finance sector to innovate the way real estate is traded on an international scale.

BitOfProperty, for example, is a crowd investment platform that specializes in real estate assets. Our listed properties represent real houses, apartments, and condominiums in countries like Japan, which our users can purchase in shares (or “Bits”) similar to how the stock exchange works. Unlike many other financial tools, however, Bits of property can yield dividends—monthly income that goes straight to investors when the property begins earning rent.

All of this is protected by Ethereum Blockchain to provide users with immutable records of ownership. Once you’ve secured an investment in property through the platform, your investment is safe from theft and any other unsanctioned activity.

We are confident that our own venture into the Japanese housing market will be a success, thanks in large part to our strategic shareholder: LIFULL. By partnering with LIFULL, a reputable and publicly traded real estate and finance firm, we’re making good on our commitment to educate our investors and help them understand more about Japan and its real estate market.

This is just the first of many projects to come from Japan, and the start of a bigger collaboration between BitOfProperty and LIFULL. Soon, the dream of cashing in on Japan’s soaring property market will be open to investors of all sizes—including private individuals who can spend €50 or higher for a cut of the impending windfall. Anyone with a reasonable budget to invest can cash in on an Airbnb unit in Shibuya during peak seasons, or a serviced apartment in the heart of Ginza.

Conclusion

Whatever you might hear about the Japanese economy for better or worse, the market for urban housing is on a steady climb. Thanks to a variety of conditions that make investing in property in Japan a more affordable and comparatively smarter decision than elsewhere in the region, units, homes, and buildings are a hot commodity.

Developments in the personal finance sector make buying into the investment a reality for smaller investors, so time is of the essence. The best time to buy was a few years ago, but the door remains wide open for the enterprising few who are willing to seize the opportunity.

News

Meet BitOfProperty in Helsinki

BitOfProperty is organizing an event in Helsinki to give better insight and overview of a current real estate investment opportunity, DepotHouse. We will also cover the situation of current real estate investment market in Tallinn.

The event will take place on 31.10.2018 at 17.30 in Nets building (Teollisuuskatu 21, 00510 Helsinki).

Topics covered during the seminar:

  • About BitOfProperty
  • Real estate market situation in Tallinn
  • General information about DepotHouse investment opportunity
  • Introduction to the developer Koidu Ehitus OÜ
  • Structure of the opprtunity
  • Location of DepotHouse
  • Investment case and various scenarios

Light snack and drinks are complementary by BitOfProperty!

Come join other likeminded real estate investors in Helsinki by signing yourself up HERE

In case, you are unable to join the event on the spot, but you are interested to participate nevetheless, then please let us know via email, team@bitofproperty.com, and we will do our best to connect you via Internet.

Koiduehitus_test_night_v4

Looking forward to see you at the event!

News

Webinar #2 BitOfProperty: Why investing in DepotHouse is a good idea?

After a successful start of our webinar routine, we are happy to announce that Webinar #2 is just around the corner.

During the second webinar, our Co-founder Taavi Pettai will present to you in depth our current ongoing investment opportunity DepotHouse. Investment project with stable passive income guaranteed for the first 24 months in which you can invest starting from as low as 50€.

Topics covered will include the general information about the building, location, its developers, reasons to invest and returns on investment. Additionally to that, Taavi will give a small overview of the market, timeline and exit strategy, structure and security of the investment.

Koiduehitus_test_night_v4

During our second of the three webinars -“BitOfProperty: Why investing in DepotHouse is a good idea?” you will be able to ask any questions regards the ongoing deal and make sure everything is clear in case you wish to invest. Webinar will go live on October 9broadcasted at 10:00-11:00 Estonian Time (GMT +3). CLICK HERE to access the LIVE stream.

Don’t forget to inform us that you are interested in joining the live stream by sending us an e-mail to team@bitofproperty.com, as well as questions you would like to answer us during the LIVE stream.

P.S. If you wish to see the previous webinar “BitOfProperty: Property investing made simple. DepotHouse deal.” the webinar is accessible HERE.

 

News

Real estate seminar 2018. First visit to DepotHouse. Throwback to BitOfProperty’s weekend.

During the weekend BitOfProperty attended “Real Estate Seminar 2018” in Tallinn, as well as had first tour trough DepotHouse.

Starting the weekend with a tour trough DepotHouse, which is currently in the development process with an estimation date by the end of the year. BitOfProperty members together with other property visitors had the chance to see the first sample apartments of DepotHouse, how far the development process has gone and have the chance to visualize how the property would look like when it would be finished. BitOfProperty got confirmation that everything is on schedule and the ongoing deal is following its plan.

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BitOfProperty’s Sunday was occupied by real estate seminar. Seminar was attended by people interested in investing in real estate, while the speakers of the event were professionals from all sorts of different parts of real estate industry. Topics covered at the seminar where legal and taxation aspects of real estate investments. Overall real estate market situation in Estonia and the ongoing trend of small investment apartments, as well as case studies of existing developers and their rental properties. One such speaker was a representative from Koidu Ehitus, developers of our current ongoing deal DepotHouse who was giving an overview of project’s existing development phase, investment opportunities and properties characteristics.

Productive and qualitative time spent for BitOfProperty. Keep tuned for more information about real estate market and our ongoing deal DepotHouse.

 

 

News

Webinar #1 BitOfProperty: Property investing made simple. DepotHouse deal.

It is important for any active investor to keep their portfolios diversified, but is real estate investing the right way to go?

Real estate investing can be a good source for passive income and one of the ways how to build up your wealth over the long run. At the same time it might seem that property investing requires a lot of money up front, or it is expected to have a lot of ongoing work after investing.

No doubt, that some part of that is true, but recent time has shown that there are new approaches that simplify the real estate investment process. One of such approaches are provided by BitOfProperty, a real estate investment platform, giving people the chance to invest in properties starting from smaller amounts. With its easily accessible and transparent platform, BitOfProperty provides competitive market opportunities that are typically not available to general public.

This and so much more will be presented to you during the first of the three LIVE webinars – “BitOfProperty: Property investing made simple. DepotHouse deal.” on September 14, making sure that BitOfProperty is the right way for you to invest in real estate properties. Webinar will be broadcasted at 10:00-11:00 Estonian Time (GMT +3). CLICK HERE to access the LIVE stream.

Topics covered:

What is BitOfProperty and how it works? 

Why BitOfProperty is the right way to invest in real estate? 

How is it different from other real estate investing options? 

Our ongoing deal DepotHouse and its charectaristics 

Investment returns of DepotHouse

Don’t forget to inform us that you are interested in joining the live stream by sending us an e-mail to team@bitofproperty.com, as well as questions you would like to answer us during the LIVE stream.