A lot has happened this year in Japan’s real estate market. We have experienced negative interest rates, record low home loan interest rates, wide currency fluctuations, a boom in foreign tourist numbers, an increased volume of real estate transactions, and a continued increase in property prices.

For ease of reading, we have compiled our market insights into a report:

Japan Property Central 2016 Market Report (3.5mb)

Once again, we have struggled with a very, very small supply of suitable properties this year. We do not see this changing in the near future as the number of new apartments coming onto the market in central Tokyo is dwindling, while re-sales remain limited. Even with growing interest from international buyers, the majority of developers in Japan still build for the domestic market with very few properties designed for foreign tastes and styles.

Nevertheless, we have managed by find some amazing properties for our clients over the past 12 months, including houses, land, high-end apartments, historic properties, resorts and commercial buildings.

Our advice to buyers in 2017 is to pay close attention to location, understand the mini-markets within the larger market, and never assume you are the only interested buyer out there. Sellers market conditions are likely to continue in areas where supply remains constricted, but we advise our buyers to be cautious of locations with potential for an over supply in the future. This has already become evident in some locations.

We were overwhelmed with a large number of inquiries from interested buyers this year and are grateful to have worked with some wonderful clients. We would also like to thank all of our readers and blog followers for your support over the past 12 months and look forward to assisting our clients seek new opportunities in 2017.

 

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