- Average Price per Square Metre (Apartment): $5,574.63
- Average Gross Rental Yield (City Centre): 2.4%
Japan is another nation known for its stability and as one of the most developed and urbanised countries in the world. Home to over 30 million people, Tokyo is the globe’s biggest metropolitan area, with diverse neighbourhoods for investors to peruse.
Tokyo is the most expensive region in Japan for property. For example, according to Yahoo Finance, a condo or small apartment in Tokyo averages $686,000, while the same type of property in Sendai will only set you back $312,000. However, while areas outside the most significant cities are much cheaper, property may not greatly appreciate value. Also, many factors must be considered to ensure steady demand from renters, making these low-priced cities and towns riskier investments. Japan is definitely a good choice if you are looking to buy off-plan property.
Additionally, it’s worth keeping in mind that overall, Japan is also known to have low rental yields due to relatively lower rental income and an ample supply of available rental properties.
Why Buy Property in Japan?
Japan’s declining population and slow growth have meant it is not historically known as a hotspot for overseas buyers. On the bright side, these long-term demographic issues have caused the country to become more welcoming to foreign residents, and as such, it has grown more popular with non-Japanese investors.
Although the economy is stable, it is not booming and is experiencing minimal growth, which is not a good sign for a property investor.
What Makes Japan Attractive to Real Estate Investors?
Japan is known as a very stable country, and the property market has experienced good growth in the past. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, home prices have grown by 21.4% in five years.
Despite some signs of slowing growth, Japan remains a robust property market likely to yield gains for long-term investors.