While Japan has opened its market to overseas property buyers without restrictions, it is crucial for individuals interested in purchasing property in Japan to have a thorough understanding and careful consideration beforehand, regardless of whether the purpose is to move to Japan or to invest in the country.

This article will therefore analyze investment trends in the Japanese real estate market and discuss the advantages for foreigners of investing in property in Japan.

01

Trends in Japanese Real Estate

In recent years, Japan's real estate investment market has shown steady growth.

For example, according to the data released by KANTEI Tokyo, a Japanese real estate research company, on February 20, the average listing price of a second-hand house in Tokyo's 23 wards (calculated on the basis of 70 square meters) reached 90.21 million yen in January, a rise of 3.4% from a year earlier and 25.6% year-on-year.

In addition, the average price of second homes in the six wards of the metropolitan center (Chiyoda, Chuo, Minato, Shinjuku, Bunkyo, and Shibuya), where overseas investment funds have been pouring in, has reached 147.67 million yen, up 3% from a year earlier.

Among them, the average prices in Chiyoda and Minato-ku have even surpassed a record high of 280.85 million yen and 210.17 million yen, respectively. Prices in the remaining four wards also set new records since 2004.

02

Advantages of Buying Real Estate in Japan

▶ No restrictions on foreigners purchasing property

As mentioned at the beginning, Japan has no special regulations or visa thresholds for foreigners to purchase or hold land or buildings, and enjoys perpetual ownership with the freedom to buy, sell, donate and inherit.

▶ Investment Flexibility

One of the major flexibilities of real estate investment in Japan is that land and buildings can be handled separately, and investors are free to purchase land, buildings, or a combination of investments.

This flexibility supports diversified investment strategies, such as purchasing land and buildings and selling them individually or as a whole. By utilizing the difference in value between land and buildings, investors can find an advantage.

▶ Convenient for traveling

Known for its diverse climate, rich cultural heritage and natural beauty, Japan is a popular tourist destination.

From the cherry blossoms that bloom in the spring, traditional festivals and fireworks displays in the summer, to the brilliant foliage in the fall, to the ski resorts of Hokkaido and hot springs of Hakone in the winter, there are always attractions and events to appeal to tourists in every season.

▶ Moving to Japan

Japanese real estate is also a way to acquire the right of abode in Japan for investors who wish to settle and grow in Japan.

Simply put, by establishing a company in Japan, investing in and holding real estate in the name of the company, and running a stable business, an investor will have the opportunity to obtain a management visa for Japan, and can apply for permanent residency in Japan after meeting certain conditions.

If you want to invest in Japanese real estate, or want to move to Japan, welcome to contact Nebula Sea International, we will provide you with customized solutions.