Comprehensive guide about how to buy apartment and house in Tokyo as foreigner in Japan, provided by KEN.

JAPANESE REAL ESTATE MARKET INFORMATION

When purchasing property to live in as well as for investment purposes, one thing to be concerned about is whether the real estate you own is going to go up or down in value. Let us explain what the Japanese real estate market is like.

Real estate values that vary greatly by area, even within the same city center

Land prices vary by area in Japan, and accordingly, the value of real estate that has buildings on it also differs greatly. Realestate values differ according to area and location even within the same city center, and in some markets, property values can increase rapidly when an older neighborhood undergoes redevelopment. Thus, it would be important to find a residence in an area whose value is expected to increase in the future.

Will I gain or lose more the longer I hold onto Japanese real estate ?

There are countries in Europe and elsewhere where older buildings remain highly valued, but normally, in Japan, the attitude is that value decreases the older a building is. In the past, there have been periods when land value went up year by year, but since the collapse of the bubble economy in the early 1990s, land values have fluctuated in accordance with changes in business conditions

Condominium values in Greater Tokyo

Condominium values in downtown Tokyo increased by 10–15% over a period of three-and-a-half years, from October 2010 to April 2014. It is obvious that Tokyo's rate of increase is low compared to the capital cities of neighboring countries —135.7% in Taipei, 126.7% in Singapore, and 125.7% in Hong Kong. Furthermore, when comparing the average value of luxury condominiums with Tokyo at a baseline of 100, wehave Hong Kong at 212.2, Taipei at 160.7, and Singapore at 149.6, making Tokyo appear undervalued. However, if we look at the example of London, we see many cases in which real estate markets located in areas that hosted the Olympics and Paralympics were rejuvenated, and it isexpected the real estate market in Tokyo will draw attention in conjunction with the 2020 Olympic and Paralympic games.

Condominium Value Indices

グラフ:Condominium Value Indices

Value Comparison of High-End Condominium Units

グラフ:Value Comparison of High-End Condominium Units

By the Japan Real Estate Institute

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