As Japan property rebounds, investors court more risk, push out of Tokyo

My wife and I have started to look at buying a place somewhere on the Izu Peninsula. The land prices vary, but some are very, very reasonable. I can see why foreign buyers are cashing in.

Well, some said Japan property market has been stagnant for too long and is long overdue for a rebound. However others said the property market had overheated 20 years ago, that's why it has been stagnant for that long.

With population of Japan on the fast declining rate, there is plenty of supply more than demand!

With Olympic 2020, there is potential for property rebounding but for how long? another 5-7 years to gain from now? What happens after 2020?

Well, the good old saying "when there is risk, there is opportunity" or should we reverse the expression "when there is opportunity, there is risk too"

Its a mixture of both ...... put on your thinking cap and think out of the box for those who dare!

Good luck in your property investment!

I have more than one beach house properties - leasehold admittedly - for peanuts. No one seems to want them but I hope that changes when Chinese perhaps see Japan as a holiday home paradise.

@timtak or maybe let's hope what you hope never happens. Chinese are speculators and big gamblers. Real estate speculation just makes life more difficult for those who actually need to live in a city, rather then just looking to flip properties.

@upintheair - Exactly right. Just look at Sydney, Australia. Some of the highest housing prices in the world, all driven by Chinese investors. Local people find it incredibly difficult to even buy in. Many people in their 30's and younger will never be able to afford buying into the market, and will have to rent their whole lives because of this.

I have more than one beach house properties - leasehold admittedly - for peanuts.

Timtak, so you acquire them under leasehold then rent them on to others?

Can I ask where the properties are? I'm very interested in coastal land (surfer), and have a few places in mind, but it's always good to find out what others are doing?

We've purchased extensively in Fukuoka, and helped many others to do the same - it's a great, vibrant market, that still has a looooooong way to go before approaching anything like bubble potential.

We only do residentials, so cannot testify to commercial but returns around the city centre in our brackets (old tenanted mansions, studio-1DK at most) have dropped (because prices have risen) from 12-15% net pre tax to 10-12% net pre tax. Still quite attractive, and only 25% rise in price or so, compared to pre-bubble madness - still a lot to grow to, and the city's growing too.

As for affordability - not sure what you mean, Fukuoka 2nd hand properties for singles and couples are between 2.5-10 million JPY - most people don't even need to get a mortgage for that. Instead of worrying about speculators, maybe we can start explaining to people that they don't necessarily all need to live in a spanking, fresh, brand new " roppongi hills" equivalent? ;) realism is the key to avoiding bubbles, as much as it may feel painful for the young upstart salaryman who wants to impress his wife's parents.