Surrounding environment about economy and real estate market in Japan
Birthrate & Population

It is said that birthrate in Japan is declining and population is aging rapidly but Tokyo-Yokohama area is still one of the most densely populated areas in the world. The number of one-person households is expected to increase for a while, and the number of studio types of 25 to 33 square-meters in the High-rise condominium is being built in the city center, and there is a demand for working women living alone.

Language Barrier

Typical Japanese people don’t speak English, but younger generations understand basic English. Foreign tourists in Japan have increased due to Japanese government’s pushing Inbound Tourism. Since “Visit Japan Campaign” has launched in 2003, Inbound Tourists increased to 10 million in 2013 from 5 million in 2003,and exceeded 20 million in 2015, exceeded 30 million in 2018.

You will see a lot of foreigners in Tokyo and employees in 7-11 or Japanese Pub called Izakaya in central Tokyo are mostly foreigners from Asian countries. Japanese people are in general conservative and introverted but they get used to foreigners.

Natural Disaster and Quality of building & House

Japan is a country which frequently suffers from natural disasters such as earthquake, Typhoon. All buildings built after 1981 comply with new earthquake-resistance standards. So we have rarely seen collapsed buildings even after big earthquake. Japanese properties are high quality and highly reliable.

For those who don’t like to take risks, they could avoid reclaimed land or low-lying, such as water front area near Tokyo Bay, and could choose Yamanote area on elevated ground. There are plenty of High-rise condominiums around water front area in Tokyo and they are still popular for domestic investors in Japan.

Less Political Risk

Japan is a safe country, and political stability is one of the advantages for long-term investment. Freedom of speech is protected by law in a democratic country. In that sense, we recommend long-term investment in Japan.

In the UK, there has been political confusion with the EU since UK-wide referendum in June 2016. So called Brexit.52% voted to withdraw from the EU and the UK left the EU on 31 January 2020.It continues to affect financial markets in UK, including real estate market.

Hong Kong is one of the biggest global financial cities but Asia’s financial hub is losing its special status. Hong Kong national security law came into effect on 30 June,2020.Foreign capital companies and Hong Kong nationals started to move to foreign countries, such as Singapore, Taiwan, UK, Australia and Japan.

Three major Japanese cities, Tokyo, Osaka and Fukuoka compete to be the next international financial hub. To attract financial professionals in the world, Japanese government plans tax incentives. Japanese government also prepares to open a one-stop service for filing all paper works in English.

In Thailand, domestic politics have been crucial risk on economy and student rally against government and protest began to spread.

There is less possibility in Japan to experience political turbulence which happens in neighboring countries.

Hygiene Control & Public Sanitation

Japanese have good personal hygiene and you will seldom see rubbish on the street, it is unlikely to happen new kind of infection such as Covid-19.