What is Tokyo like?
Tokyo is the largest city in Japan and one of the world’s leading cities, attracting people not only from domestic but also from abroad as a unique fusion of traditional culture, cutting-edge technology, and pop culture.
GLOBAL FINANCIAL CENTRE
3rd place in overall ranking of world cities.
People, capital and information gather from all over the world.
STRONG TOURIST SPENDING
Before the pandemic, the results in 2019 that Japan ranks 7th in the world in international tourism income ranking. In Asia, it is in the second place after Thailand. Focusing on Tokyo, the amount of money spent by international tourists was approximately 1,264.5 billion yen.
WORLD CLASS RAIL
There is no other city in Japan, and probably no other city in the world, where trains are as convenient as in Tokyo. Tokyo’s rail network covers all parts of the city and is a very convenient means of transportation. Furthermore, the trains run on a precise time schedule, at intervals of a few minutes.
UNIQUE, DYNAMIC CULTURE
The interesting thing about Tokyo is that it combines historic areas with buildings featuring cutting-edge technology. There is everything ranging from large business districts to young pop culture to traditional events such as Kabuki and Sumo in Tokyo.
BIG CITY WITH NATURE
Tokyo aims to be a green city that supports greening projects. For example, at this time of spring, one can well feel the Japanese spring with abundant greenery and flowers blooming, including cherry blossoms, in the many large parks and various places.
The appeal of investing in Tokyo real estate
1. Rental demand is always high
Tokyo’s population continues to grow and supply is not keeping up with demand.
Since demand will remain high for the time being, rents are expected to stabilize, and vacancy rates will decline.
2. Selling prices and rents are unlikely to fall
For this reason, real estate in Tokyo is relatively resistant to price declines in both sale prices and rents, even if the property was built a while ago. This enables yields to be stabilized.
3. Easy to find buyers
Based on the current high demand for real estate, sellers can easily find buyers when they want to sell their property.
4. Stability of investment plans For these reasons, the outcome of investment is more predictable and stable real estate management can be achieved.
In addition, one can also expect to enjoy capital gains.
Land prices in Tokyo have been rising steadily, up 200% over the past 20 years.
The figure below is a comparison of average prices of condominiums in Tokyo with the entire Japan. The graph shows that the price in Tokyo has been increasing year by year. The reasons are as follows.
1. In Japan, mortgage interest rates are very low. (about 1%)
2. Prices were boosted by the high expectations for Olympics 2020.
3. Shortage of labor due to reconstruction projects and the rush of construction for the Tokyo Olympics.
4. Weakening yen is an advantage to foreign investors.
As the decline in yen was quite significant, there have been many inquiries and requests for property viewing from overseas.
Recommended area in Tokyo
We highly recommend 3A area for property investment.
Tokyo has 62 cities and wards. Within the cities and the wards, 23 wards in the east side are the metropolitan area in Tokyo. Moreover, Minato ward in the center, is the high-end residential area. In Minato ward, Akasaka, Aoyama and Azabu are called 3A, which is the most luxurious area.
Aoyama: The center of fashion area near Shibuya and Harajuku.
Akasaka: The town where many embassies are located and it attracts many executives.
Azabu: A famous luxury residential area which boasts stable popularity.
Condominiums in these area are priced at an average of approximately 2.4 million yen (23,738 SGD) per square meter.
AZABU KASUMICHO PARK MANSION
Address: 4-13-23, Nishiazabu, Minato-ku, Tokyo.
GRAND MAISON AZABU ICHINOHASHI
Address: 2-20-10, Azabujuban, Minato-ku, Tokyo, Japan
