The continued decline of the Yen has also attracted many foreign investors to enter Japan’s commercial real estate market.
The latest data released by Japan’s Ministry of Land, Infrastructure, Transport and Tourism on April 30 showed that Japan’s national commercial real estate price index increased by 2.0% month-on-month in the fourth quarter of 2023, of which the three major urban areas by including Tokyo and Osaka increased by 3.7% month on month. At a real estate company in Tokyo, reporters learned that a British investor was consulting with staff via video. The investor told reporters that he started investing in the Japanese market 10 years ago and bought about 100 real estate properties in Japan, including office buildings and shops.
British Investor: The exchange rate this year (Japanese yen against the US dollar) is very favorable, I think this year’s investment returns will increase by around 15%.
A staff member of a Japanese real estate company told reporters that compared to overseas, the vacancy rate of Japanese office buildings is relatively low, taking Tokyo’s main urban areas as an example, the current average vacancy rate is less than 5.5%, and the lowest in other major cities is only 3% This also means that investors are more likely to get stable returns. In addition, the continued depreciation of the Japanese yen and its maintenance at a low level has also brought benefits to foreign investors Recently, the number of inquiries they have received from abroad has increased significantly.
Luo Liya, staff member of a Japanese real estate company: This year, the number of inquiries from foreign investors has increased by 30% year on year, and the volume of transactions has also increased by 20%. buy office buildings, with prices ranging from 500 million to 1 billion yen (about Total RMB 23 million to RMB 46 million).
In addition to individual investors, some large foreign real estate companies also invest in large-scale real estate such as logistics facilities in Japan Such projects require a large amount of money, and usually require a large amount of money to be raised in Japanese yen in Japan. Therefore, in addition to industry fundamentals, investors are also very concerned about the impact of the Bank of Japan’s monetary policy on Japanese yen interest rates. Although the Bank of Japan is still maintaining loose policy and the benchmark interest rate remains between 0 and 0.1%, as inflation continues, outsiders expect that the Bank of Japan is likely to raise interest rates further in the future, which will also increase the borrowing. the costs of foreign real estate companies in Japan are rising.
(Article source: TCC Finance)
Article source: TCC Finance
Original title: The depreciation of the yen has attracted foreign investors to pay attention to Japanese commercial real estate, and transaction volume has increased by 20% this year.
Declare solemnly:Oriental Fortune publishes this content to spread more information. Act accordingly at your own risk.
#depreciation #Yen #attracted #attention #foreign #investors #Japanese #commercial #real #estate #increased #number #transactions #year_ #Fortune #Oriental #Network
