According to recent data collected by international real estate companies operating in Japan, a dramatic increase in inquiries from the overseas clients has been documented since Japan decided to reopen its borders in October 2022. FM Investment claims that in the past half year around 70% of the potential investors were Singapore citizenship holders with Hong Kongers following them.
Singapore and Hong Kong are both renowned for unbelievably high property values, while at the state of weakened yen rate against foreign currencies, Japanese investment properties are being more than alluring for the overseas buyers. This makes Japan a perfect investment destination. Among the other areas, Osaka is especially popular due to 2025 World Expo to be held here and a casino resort to be opened in 2029. Osaka has lower property values compared to Tokyo which particularly attracts a lot of investors since long ago. According to Bloomberg Intelligence data, with both of these upcoming events, Osaka metropolitan authorities are expecting to receive about 20 million visitors a year. That would mean clearing the 30% of the target annual foreign tourists number set by Japanese government. No wonder that Osaka total investment deals rose by 13% since last year. The city keeps on attracting both local and overseas investors with its increasing income prospects.
Japanese real estate sales for the first quarter of this year can boast 268.7 billion yen (almost 2 billion USD) worth of foreign assets, which is twice as more as last year. With Rihga Royal Hotel Osaka acquired by a USA-Canadian real estate investment company as well as several properties and land purchased by Singapore-based entrepreneurs, foreign investors are getting more power at Osaka tourist accommodation business. Average hotel yields in Osaka are around 4 - 4.5%, which is almost 1-1.5% higher than those in Tokyo.
Not only hotels and land attract the investors from abroad, but the residential property, too. Osaka has been always known for its high occupancy rate and stable rental income so property investors from all over the World choose this busy and energetic city in Western Japan.
By Summer 2023 foreign nationals have shown a trend to inquire about Osaka residential properties thrice much as they used to do within the same period last year.
Comments