日本不動産市場の特徴と投資戦略

Japan, in short, “Mature”, “Steady”, “Low Growth”, “Oversupply”market

  • “20 years of bear market” has made Japan property price substantially cheaper.
  • Gross rental return is high, at least 5% even in Tokyo prime area. Over 10% is easily found in many places.
  • Capital growth opportunity is limited, due to shrinking/ageing population
  • Vacancy rate is high (national average 20%) due to oversupply. Some areas experiences rent decrease.
  • Currently, Tokyo enjoys Olympic impact, expects gradual capital growth towards 2020.

Pros and Cons of Japan market

Brighter side

  • High rental return
  • High yield gap (Low interest rate)
  • High building quality, earthquake-proof technology
  • High maintenance ability

Brighter side

  • Shortcomings, Risks
  • Low capital growth
  • Complex tax system
  • Market is still very domestic. Limited service for non-Japanese

Different area, different investment model…

Tokyo CBD
Pros Cons…

Tokyo metro areas (Yokohama, Saitama etc..)
Pros Cons…

Second – tier cities (Osaka, Nagoya, Fukuoka etc…)
Pros Cons…

Rural Small/medium cities
Pros Cons…