Japan continues to see property price growth
Despite an economy which is barely growing, Japan still has both domestic and international investors interested. The country has suffered from a shrinking population paired with stagnated wages. This still seems to have had little effect on the countries property market, as Tokyo continues to see some of the most expensive land in the world.
These prices are seeing a real effect on the household market, as many struggle to afford the increasing central prices. Tokyo boast some of the most expensive condos in the world, with people expected to pay as much as nine times annual income.
There has been much competition for property investment in the city, with prices rising by around 20 percent over the past two years. It’s this growth which is seeing the return of the overseas investor, something the city has been short of for the past 20 years.
One of the main factors driving the price up is the growing collective of high-net-worth individuals. These individuals tend to invest in expensive city centre condos (particularly tower condos) as a tax-saving measure.
The only real obstacle standing in the way of the investment sector is the current banking restrictions. With only a limited number of banks willing to lend to the overseas market, many are reliant on their cash reserves as the only means of purchase. With the return of the overseas investor it is likely these restrictions are likely to loosen and prices will jump further.