• SnowDogTeam

Japan – The Ultimate Real Estate Investment Opportunity For 2019

Japan remains among the best performing economies in the world. At the end of 2017, the World Bank estimated that the country’s economy is worth nearly $5 trillion in constantly growing GDP terms, and the dizzying magnitude of its economic might has so far been eclipsed only by the United States and China. It’s easy to see that with a stable business environment underpinning its steadily expanding industries, the Japanese property market is a gleaming jewel in Asia – in fact an absolute lure for real estate investors in 2019.


Boom Time In Japan



As testament to Japan’s booming economy, The Japan Times reported this December that the Japanese markets across the board have been in incredible expansion mode since the end of 2012 and no slow down to date is predicted to disrupt the upward swing. The ongoing economic growth has been listed as the second longest seen since 1945.



“The expansion phase from December 2012 … entered its 58th month in September last year. The assessment bolsters the likelihood of the current growth phase in January 2019 becoming the longest in the post-war period,” the publication indicated.

There is no denying that the Japanese economy presently operates on solid ground and such strength is organically reflected in several key sectors. Foremost of the direct beneficiaries of such bump is the real estate industry, which actually is among the most prized in the world. In the months and years ahead, opportunities abound in the Japanese property market that buyers and investors alike are poised to get a good start in 2019.


Japan’s Real Estate Is Flourishing



In order to make sense of how robust the real estate sector in Japan is, it will be instructive to take a close on two sample markets – that of metropolitan Tokyo, Japan’s capital, and Niseko, a rising ski resort town in the Hokkaido prefecture and located in the northernmost part of the country. The former is already an economic powerhouse and the latter is fast shaping up as the next big thing in the property market.


The numbers for Tokyo are just plain impressive. Its economic size is approximately half of Japan, and the city’s business dealings amounted to more than twice that Taiwan can generate at a given fiscal year. Not surprisingly, Tokyo is eternally on top of every known superlative lists – preferred by business executives and certainly on the radar of international tourists who flood in to the city by the millions each year.



In time for the 2020 Olympics, Tokyo is in the process of implementing massive infrastructure and development projects. This indicates, according to analysts, that the property market in the metropolis will shoot up both in demand and value. Considering the well-established facts that Tokyo is among the safest cities in the world and getting around the city is a breeze, thanks to its world-class mass transport facilities, it is but natural to look highly at its economic prospects. For investors, taking part on Tokyo’s high-value property market will surely lead to the desired results.



Up north in Hokkaido, economic experts are in agreement that Niseko, formerly a favourite winter holiday destination exclusively by Australian backpackers, is blazing on its road to explosive growth. The resort town is rapidly expanding and will likely reach over $1 billion in overall value for real estate dealings. Per the market report furnished by property consultancy C9 Hotelworks, Niseko’s tourism activities will remain on the upward path and the trajectory will be fired by the heavy influx of domestic and international visitors. C9 noted in its report that the New Chitose Airport will continue to serve as the growth engine for Niseko’s crucial industries – tourism, hotel, hospitality and related services and most importantly the property sector.


Niseko’s real estate is on fire, fed largely by more than 60 billion (Japanese Yen) of investment inflows from 2011 through 2015. Looking ahead, the total picture is rosy for Niseko. Further growth in the property market is given, and mostly due to the encouraging freehold ownership in the town that allows foreign buyers to enjoy 100 percent holdings. It helps too that high capital gains and a lower yen are currently in place, elements that the C9 report said act as important boosters for growth.


A Great Shot At Real Estate Investment In Japan



The writing on the wall cannot be ignored – Japan continues on its path of excellence. Its economy while not perfect is driving up the sectors that matter to perform at high levels. The tourism industry is bustling and as a result, the property market is afforded the sufficient fuel to zoom further up. Tokyo and Niseko are but the sample markets that prove Japan’s real estate is in a perfectly healthy and stable state. Going by these indicators, it is safe to say that for 2019 and perhaps beyond the ultimate real estate investment opportunity can be found in Japan.