There was an article about which country’s citizens are buying the most real estate in Japan. （click to jump the original article )
Foreign Investors Flocking to Japanese Real Estate
According to the article, Japanese real estate is gaining attention among foreign investors. This is due to the impact of a weaker yen and the fact that many affluent individuals hold US dollars, making Japanese real estate appear relatively affordable.
Particularly, real estate prices in Tokyo have continued to surge, and foreign investors are eager to make purchases.
The Reasons for Real Estate Investment in Japan
Key points mentioned are as follows:
- Impact of a weaker yen: The current weak yen situation makes Japanese real estate a relatively affordable option for foreign investors. Many affluent clients hold US dollars, which is one of the reasons why Japanese real estate is gaining attention.
- Rising real estate prices: Real estate prices in Tokyo have been steadily increasing since the asset bubble era, attracting the interest of foreign investors. For instance, a 20-billion-yen residence in Azabudai Hills is already sold out.
- Diversity of foreign investors: Aside from Singaporean institutional investors, there is an increasing number of inquiries from the United States and Western countries.
- Investment schemes: Foreign investors typically purchase real estate in Japan through corporations rather than as individuals, allowing them to benefit from bank loans and tax advantages. Additionally, Japanese management companies offer one-stop services for rental properties.
- Investment environment in Japan: Japan offers a favorable environment for foreign investors with lower tax rates and the ability to hold property in freehold, without imposing high tax rates, unlike many other countries.
Investment Appeal in Toyama:
Now, let’s consider Toyama as an investment destination.
Toyama boasts abundant tourism resources, but it faces the challenge of inadequate accommodation facilities and other infrastructure development in inbound tourism. Given this situation, investing in tourism facilities in Toyama can be an effective strategy.
Tourism resources in Toyama include majestic mountain landscapes for hiking, abundant seafood, and the UNESCO World Heritage Site, Gokayama. These are potential attractions for drawing tourists and enhancing Toyama’s appeal.
However, while tourism resources are increasing, infrastructure for accommodation and improving the convenience of tourists remains underdeveloped. Therefore, it is a strategic choice for investors to focus on the development of accommodation facilities, transportation infrastructure, and tourism spots.
The inbound tourism market is expected to continue growing, and investing in it has the potential to contribute to Toyama’s economic development and increased real estate value. Specifically, investments that focus on the development of accommodation and tourism facilities are likely to be attractive and profitable.
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