Tokyo Property Market Overview


Not only does Tokyo make a strong investment case for both investors and homeowners, but now is perhaps the greatest time in the city`s history to purchase property. We have seen the returns of capital gains in large parts of the metropolis and there remains strong rental return opportunities as well, with yields higher than other major global cities. There are a number of factors behind this, ranging from growing international awareness, greater inbound tourism and the changing nature of the domestic Japanese market.



Upcoming Events

The 2020 Tokyo Olympics and the Rugby Worldcup of 2019 are at the forefront of Tokyo`s transformation into a global travel destination – and are part of the governments efforts to raise tourism to 40 million people per year.

This comes at a time of limited hotel space, consumer preference for peer-to-peer accommodation and enhanced high-end travel experiences.



Government Policy

When Shinzo Abe was elected in December 2012, he introduced his now famous program of radical economic reforms dubbed “Abenomics”. Thanks to the aggressive monetary easing policies brought and the new trade-orientated foreign-policy, the Japanese economy has started to move forward in a more virtuous cycle. We have seen corporate profits return, strong investment from business and greater consumer spending.



Interest Rates

A key part of Abenomics was also reduced interest rates to an extremely low level and backing that up with new laws to encourage the growth of the second-hand market. This is pushing more younger Japanese people to buy their own homes, something that they are in a better place to do than they were 10 or 20 years ago – as they are entering a job market now actively keen to attract them.



On top of this, the Tokyo Metropolitan Government has also launched the Special Zone for Asian Headquarters project as a new plan to attract foreign companies to Tokyo, with the aim to make Tokyo the preferred site in the APAC region for corporate headquarters and R&D centers. Tax incentives, low interest loans, a quicker immigration process, simplified documents and living support in multiple languages are being provided.



The Future

Post Olympics, Tokyo will benefit from continued internal Japanese immigration, capital investment and transformation of the economy around services and the financial-sector. In addition to this, there is also the coming Integrated Resorts and high-end resorts encouraging more luxury visitors, the growing wealth of younger Japanese and the country`s ability to take a leading role in Asia.