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.
Image 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.
Image 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.
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.