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More foreign investors began looking for properties in Japan following the depreciation of the yen. Some are selling their properties at inflated prices by taking advantage of the weak yen.

10 Comments

Masahiro Kusanagi, an official of the real estate firm Nihon Agent Inc. Overseas investors are increasingly jumping on the recent sharp depreciation of the yen to purchase real estate properties in Japan at bargain prices.

© Asahi Shimbun

©2024 GPlusMedia Inc.

10 Comments
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If they're foreign residents then they are not "taking advantage" of the weak yen by selling. They're trying to avoid losses because the properties, in terms of the currencies of their home countries, are worth a lot less than when they bought them.

Anyway, how can they "inflate" the selling prices of their properties? Wouldn't those prices be set by the market? If someone can tell how I can "inflate" the selling price of my home, I'm all ears.

7 ( +9 / -2 )

It's called chancing your arm. If you just try and market your property at an inflated price and a foreign investor pays up because it still seems cheap given the exchange rates, there's your market.

The sellor sets the market only if the buyer is willing to pay that price ;). You might get lucky with an overseas buyer who is cashed up and doesnt know the local market intimately, a good time to highball the market. It has been happening in Australia, people keep putting the prices up and the buyer keeps paying.

6 ( +6 / -0 )

If they're foreign residents then they are not "taking advantage" of the weak yen by selling. They're trying to avoid losses because the properties, in terms of the currencies of their home countries, are worth a lot less than when they bought them.

Anyway, how can they "inflate" the selling prices of their properties? Wouldn't those prices be set by the market? If someone can tell how I can "inflate" the selling price of my home, I'm all ears.

Foreign investors (not necessarily residents according to the full article) are paying for Japanese properties using other currencies such as USD or RMB. In that way, Japanese properties have become relatively cheaper when you look at the price in your home currency. It's just an FX game..

Where the "inflation" comment comes in is that the demand for properties from foreign investors increases. Also, if you are connected to a real estate agent that sells properties to foreign investors you could raise your price knowing that a foreign investor isn't going to be bothered too much because the yen is so weak at this point.

0 ( +2 / -2 )

The sellor sets the market only if the buyer is willing to pay that price ;). You might get lucky with an overseas buyer who is cashed up and doesnt know the local market intimately, a good time to highball the market. It has been happening in Australia, people keep putting the prices up and the buyer keeps paying.

It's happened many years ago near my hometown, where the Chinese would buy the property with cash. Then they tear down the property and put mini mansions. Well, my hometown put an ordinance against mini mansions, so we haven't had that trouble. Not to mention. there are other ordinances that forbids most chain fast food places, traffic lights, and any other ordinances that forbids changing the character of the community.

3 ( +4 / -1 )

It's happened many years ago near my hometown, where the Chinese would buy the property with cash

Black money that cannot be traced? Or fake money that they printed?

0 ( +1 / -1 )

JeffLee

Anyway, how can they "inflate" the selling prices of their properties? Wouldn't those prices be set by the market? If someone can tell how I can "inflate" the selling price of my home, I'm all ears.

Totally true. The buyer determines the price they are willing to pay. It's a free market, so the seller cannot "inflate" the price if nobody is willing to pay that price.

2 ( +3 / -1 )

More foreign investors began looking for properties in Japan following the depreciation of the yen. Some are selling their properties at inflated prices by taking advantage of the weak yen.

The tittle is confusing and the tiny paragraph after doesn't shed any light on it.

So foreign investors are buy land because the yen is low making property in Japan a bargain for non resident foreigners.

At least that is my guess because us Foreigners living here are paid in yen so no advantage.

But who is selling their properties?

Not foreigners, they will lose on the exchange rate, foreign residents if planing to leaving also no benefit as again the exchange rate eliminated any gains,

So who is selling? Japanese taking advantage of high prices and willing to move to cheaper areas.

Bought my place in Tokyo 2 years ago and the value has jumped significantly but no point in selling because trying to buy another place will cost even more unless I decide to move to the middle of nowhere in the countryside.

0 ( +2 / -2 )

More foreign investors began looking for properties in Japan following the depreciation of the yen. Some are selling their properties at inflated prices by taking advantage of the weak yen.

if the gov is smart, they'll buy out all 9 million plus Akiya around Japan, reform them, and sell them to foreign investors at decent prices. They're just sitting there. Might as well make money out of them

-1 ( +1 / -2 )

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