NEWS

Hello everyone!


Today, we will continue our series of reports.

Chinese people are buying Japanese real estate at a tremendous rate, and we see many of them in Japan today.

It is said that the desire of wealthy Chinese to invest in real estate in Japan is high.

According to a survey of investors in Greater China, more than 20% of them want to invest more than 50% of their savings in Japanese real estate.

Why is Japanese real estate so popular among the Chinese?

①Because ownership of Japanese real estate is permanent
In China, land belongs to the state and cannot be owned, only buildings can be owned. Since Japanese real estate is permanent, it is also popular as an asset preservation role that does not diminish assets.

Particularly popular locations among Chinese are said to be offices or commercial buildings near train stations in Tokyo's prestigious Minato, Shibuya, Shinjuku, and Chiyoda wards.

Chinese investors who cannot come to Japan due to the Corona disaster are said to be buying real estate in Japan through real estate brokers on the Internet without ever visiting Japan, indicating the high popularity of this type of real estate.

② Because real estate prices in China are too high compared to Japan
The average price of a new condominium in Beijing in 2019 is said to be 72 million yen, which is high compared to the average price per unit of a new condominium in the Japanese metropolitan area (Tokyo, Kanagawa, Saitama, Chiba) of 65.18 million yen. In addition, Japanese real estate is undervalued because land rights are often included in the price.

In addition, the average yield for real estate investment in China's major metropolitan areas is around 2%, but in Tokyo, yields of around 5% can be expected, so profitability is also considered high.

③Because the number of wealthy people in China is increasing every year
The number of high-net-worth individuals in China is increasing every year. 5,279,000 people in China own more than US$1 million as of 2020, an increase of about 257,000 people in one year. This number is second only to the United States.

With the global stock market boom over the past few years, the assets of the wealthy have been expanding, not only in China, and the wealthy are looking for places to invest. The wealthy in China are particularly interested in Japanese real estate for the reasons described above.

Are restrictions on foreign investment necessary? Some point out security issues.

There are other options other than Japan for the same real estate investment destination. However, Japan seems to have the advantage of being geographically close to China with no restrictions on foreign real estate investment.

While the influx of foreign money is great for companies and individuals who want to sell real estate, there are some downsides to the lack of regulations on foreign real estate investment. In particular, many experts point out security issues. In the future, it will be necessary to discuss the necessity of investment regulations.


How was it?

Did you find such reasons? It is very interesting, isn't it?

Please look forward to more next week!

instagram

 realestatejapan