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Chinese Investors target Japan's Property Market

The current rebirth of Japan's home market has actually led to a visible increase in financial investment from affluent Chinese nationals in the past YEAR.

Although Hong Kong and Singapore have long been the favored investment locations of Chinese property investors, the intro of different cooling steps has actually diverted their attention towards Japan's recovering realty market, CNBC Asia reported.

Chinese specific investors now appear to be dipping their toes in the water and considering Japan as the next destination, a wave that could be strengthened as capital controls in China are lifted," Freya Beamish, economist at Lombard Street Study wrote in a record titled Japan's House Party. Japan is now benefiting from second round impacts of Asia's overheated home sector.

Typical property prices in the Tokyo Metropolitan area rose 12.2 percent year-on-year from July 2012, according to figures from the Land Institute of Japan. A three-bedroom unit at Parkhouse Gran Chidorigafuch-- one of the Japanese capital's most pricey condominium developments-- currently commands USD236,808 per sqm, while asking prices for comparable homes in Hong Kong ordinary virtually USD322,920 per sqm, according Jones Lang LaSalle.

The September statement that Tokyo will host the 2020 Summer Olympics is also a considerable factor in the growing interest in Japanese residential and industrial realty, according to Donald Han, handling director of property consulting firm Chesterton Singapore.

"This is in light of the existing upswing in the economy, and the reality that it [Tokyo] has actually been awarded the 2020 Olympics," Han told CNBC. "Chinese investors are looking into hotels and resorts also, with their primary targets being first tier cities such as Tokyo, Osaka, and Yokohama.".

Foreign financial investment in Tokyo remains reasonably reduced, however, when compared to significant international cities, including London and New York City, and accounted for just 10 percent of all sales with 2012, Jones Lang LaSalle information showed. In the exact same period, London and New York City tape-recorded sales to abroad investors at 63 percent and 31 percent of overall market deals, respectively.

Last modified onWednesday, 04 December 2013 20:05

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