Is Tokyo, Japan the next big thing in the ever-shifting property market landscape? It appears so as the prevailing conditions on the ground point to an imminent boom phase – at least in the high-end real estate sector.
At the moment, there is “sense of energy … that Tokyo radiates,” that incredible growth looms inevitably on the horizon, Property Report suggested in a new article. It might be that the general economy, still reeling from the woes that piled through the years, remains cautiously optimistic but one industry stands out, and prominently. The city’s premium property market is gearing up for a mighty expansion, the report said.
Thanks to “Abenomics,” the general economic policy put forward by Japanese Prime Minister Shinzo Abe, the industry has been given the robust pair of legs to sprint by leaps and bounds.
“The property market has been an undoubted beneficiary with demand and construction activity booming,” the same report indicated.
In particular, it is the luxury residential segment that will mostly reap the benefits. According to industry observer Japan Real Estate Institute (JREI), the premium property market will see an uptick in demands over the next few years.
“The luxury market has the potential to increase much more … Conditions are still good to buy,” the latest assessment from BREI was quoted by the Property Report as saying.
As mentioned, the national government has been helpful so far in propelling the property market to its current status. The favourable policy in effect led to low interest rate and a devaluated Japanese yen – key elements that conspire to draw in effectively buyers and investors alike.
The ease of accessing funds and the high purchasing power enjoyed by foreign buyers make for smooth real estate transactions.
Buyers too are well assured that investments made will deliver on the promised yields. Property prices, specifically high-end apartments and condominiums, have been on the rise since 2013 and there is no sign of a slowdown anytime soon.
And even as land prices are mostly north-bound, Asian buyers continue heading to Tokyo due to the relatively higher price tags found in other premium markets in the region. The Japanese capital is essentially a lure to affluent individuals searching for assets to invest in.
“Housing prices in Singapore and Hong Kong are enormously expensive and Tokyo is really cheap for them,” one industry expert told Property Report.
Additionally, the distinct Tokyo brand remains a powerful aphrodisiac that many find hard to resist. Residing in the city that is eternally safe, clean and efficient serves to convince for that buy decision.
Party To Continue
It is safe to say, per JREI, that the party will last longer than expected. According to the firm, there is no likelihood of “bubble burst” or “market reversal” occurring anytime soon. The market is predicted to stay on its present course – that is, on a high plateau – in the foreseeable future.
Tourism, which normally acts a key growth driver for the real estate market, is booming and more so in the next few years as Tokyo makes preparations for the 2020 Olympics.