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Average price of Tokyo area condo up 9.5% to record high in FY2023

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Nikkei reports that overseas investors are snatching up Tokyo properties they view as undervalued: “The influx of foreign demand has transformed condos in prime locations from places of residence to investment vehicles for owners with no intent to live there full-time.”

And a Japan Today article from last autumn examines “Chinese grabbing up Tokyo real estate.”

The acquisitions are by no means limited to Tokyo. Chinese buyers are also shopping for properties on the Boso Peninsula of Chiba, in Kawaguchi City in Saitama, and Bashamichi in central Yokohama. And also resort areas even further away from the metropolis, such as Komoro, a city of around 40,000 close to Karuizawa in Nagano Prefecture, and the scenic Tsumagoi Village in Gunma Prefecture.

https://japantoday.com/category/features/kuchikomi/chinese-grabbing-up-tokyo-real-estate

Society should also seriously examine the potential negative impacts that institutional investors are having on communities.

7 ( +7 / -0 )

Looks like Abenomics worked.

-8 ( +1 / -9 )

When foreigners can buy new developments with just 20% down and nothing till completion and most qualified residents can buy anything with just 5% down, same forces that drove Asian real estate up to come crashing down later. Thats why Japanese rates cannot rise because it will kill this goose.

5 ( +6 / -1 )

Japan is allowing foreigners to buy up property and raise prices so sky high that it leaves many Japanese and long-term residents struggling and or homeless. Canada, has put a halt on foreigners buying there, because there are so many Canadians homeless now, and so, what is Japan going to do to protect the people who work, pay taxes and put food on their tables? Those politicians should be hanging their heads in shame.

0 ( +4 / -4 )

NZ halted it several years ago but is now going to relax foreign property ownership law but only at the top end of the market. Seems reasonable but there is still a shortage of housing at the lower end which is driving rents up.

3 ( +4 / -1 )

Prices are expected to remain high for the time being, with sales of units in central Tokyo geared toward dual-income households and wealthy individuals performing well.

This and the rich absentee buyers mentioned above are the reason why. "Condos" here should not be used as a proxy for "housing" where ordinary people lives. This sector of the market isn't for ordinary people. The average would be much higher, but includes one room places that speculators will be buying, not families.

One reason that rich folks can buy them and not live in them are Japanese rules about measuring depreciation. If you are paying 60% income tax on part of your income to whatever country's taxman, you might as well have an asset with tasty on-paper depreciation in Tokyo, Niseko or wherever that will reduce that 60% tax portion of your income. You don't need to live in it, and all that matters is whether the real world depreciation is less than you'd pay in tax. As it happens, apartments have been going up in Tokyo and Niseko anyway.

1 ( +1 / -0 )

B-U-B-B-L-E ! ! !

-1 ( +4 / -5 )

For those of you who already bought, congratulations! I may have to consider Saitama, ghosh help me.

1 ( +3 / -2 )

Abenomics the gift that keeps on "ruining the country" giving! What an embarrassment!

3 ( +6 / -3 )

It is only because of 2 things

china imploding

weak af yen

when either of these shifts - bubble will burst.

-1 ( +2 / -3 )

@redemption - come to Omiya and join a growing club. Easy access to Tokyo and bullet trains heading north and west. Lots of development going on.

-1 ( +1 / -2 )

I personally wouldn’t worry about foreigners taking all the properties. Consider that there are prefectures where one fifth of the housing stock is an akiya!

0 ( +2 / -2 )

Omiya here I come!

0 ( +1 / -1 )

Why don't these articles or reports include the value of the land they sit on, or in general?

0 ( +1 / -1 )

This is an article about the average price of new condos sold. They are selling more “ high end” building thereby upping the average price.

Imaging more Benz and Range Rovers being sold.... boosting the average price of new cars..

How much effect would that have on the value of your 6 year old Toyota Prius?

-2 ( +0 / -2 )

Prices go up in the housing market yet salaries stay the same and have been for years, very sad

2 ( +2 / -0 )

Japan needs to hard ban all Chinese real estate investment right now before Japan's housing market turns into Canada's

1 ( +1 / -0 )

Clan, I could not agree with you more.

0 ( +0 / -0 )

Japan like so many other countries have to stop over seas buyers from buying their properties, full stop, they do not buy them to live in but as investments, so of course this drives the price of them up. Plus, the have to also stop corporations, and investment fund people buying up as many as they can for future profits. Finally, and I believe this one very strongly, they should have a strict policy of 'one buyer one home' and that's it, and anyone/company caught trying to find loop holes to get around this should receive a prison sentence. This needs to happen in EVERY country, no exceptions....So there, housing crisis sorted..........oh but wait, I forgot about greed and the politicians.

0 ( +0 / -0 )

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