An Ever-Growing Opportunity
The Japanese property market is one of the biggest in the world, both in commercial and residential sectors, and sits at the center of one of the world`s biggest economies. Despite this, it remains relatively underserved by international investors.
What is exciting right now however are the major changes taking place; the 2020 Olympics, integrated casino resorts and a realignment of the economy around services are all major macro factors that are creating a bright future with a richer lifestyle.
Changing for the future
Economic reforms by the Abe government are transforming the Japanese economy, with service industries leading the way. These include easing visa requirements for foreign professionals, adding more English-language support, and creating special economic zones with reduced taxes – all of which is attracting new businesses that are adding growth to the Japanese economy.
Despite the population decline, young people remain a large section of Japanese society and they are continuing to move into to the main cities. They are also well educated and growing up into a strong job market, with better wages. They have easier access to loans, new protections from revised real estate rules and enjoy Japan`s traditional strengths of high-social stability and strong rule of law.
Inbound tourism in Japan is booming, with visitor numbers hitting 27 million in 2017 and 40 million targeted in 2020. Asia is leading the way, but growing numbers from Europe and America are also making the trip, attracted by a rich culture, high quality of life, clean environment and a strong customer service ethic. If tourist targets are met, Tokyo will overtake London as the world`s most visited city.
In 2019 Japan will host the Rugby World Cup, in 2020 the Olympic Games and after that, new integrated resorts (casinos) are due to be developed. These factors are helping to build Japan`s presence in international markets, and establish a long-term trend for high-end luxury travel into the country.
Business and Lifestyle Leader
The size and scale of the Japanese Economy
Japan remains the world`s 3rd largest economy with many of its regional centers richer than entire countries. It is also a major innovation hub; since 2000, Japan has ranked in the top three countries for total % of GDP devoted to research and development.
Japan`s lifestyle remains the envy of the world and people live longer here than anywhere else. In a global ranking of a city’s livability and level of happiness, Tokyo scored top place, Fukuoka 7th and Kyoto 9th. This ranking combines economic, health and lifestyle factors.
Takeaways
Changing Economy
Japan is the world`s 3rd biggest economy and many of its regions are richer than entire countries. Despite this, prices remain relatively cheap, especially in comparison to other major markets like London or Hong Kong.
Strong Demand
Central Tokyo and other major urban centers are seeing strong demand for real estate, occupancy rates are high, and demand can be expected to continue with growing tourism, an improving birthrate and internal migration.
Quality of Life
Japan has a very high quality of life, with a strong rule of law and world-class infrastructure. As the economy goes through a transformation to become more serviced focused, these factors can be expected to improve further.