Surging Tokyo property prices squeeze out young professionals

According to firm Cushman & amp, Wakefield, foreigners have invested more than 1.8 trillion yen in Chinese real estate since 2019, outpacing moves from institutional investors, home funds, and corporations.

And more will follow. According to Cushman & amp, Wakefield director Mari Kumagai, money from property speculators has accumulated over the pandemic, and Japan appears to be a popular Asian country for it to land.

According to Kumagai,” If they want to keep the money in Asia Pacific, it tends to be either Australia, Singapore, or Japan ,” with Japan being the most alluring of the three based on value stability and economic dimensions.

The regular apartments price in central Tokyo was increased in the previous year by a large influx of high-end homes entering the market. The fresh Azabudai Hills complex, which includes the largest office tower in the nation and around 1,400 residential units, is emblematic of that.

According to Wang Mao San, president of Shingi – fusaya Realty, the Azabudai project, which towers over the renowned Tokyo Tower, is attracting investors in Taiwan.

He claimed that while ordinary wealthy traders concentrate on flats in Tokyo and the western district of Osaka, extremely powerful Taiwanese are acquiring Tokyo properties for more than 100 million yen for second homes.

Regarding the allure of the business, Wang said that” In Japan, the political and economic situation is secure.” When compared to other major places like Hong Kong and London, Tokyo is still not that cheap.

According to Japan Real Estate Institute info, a luxury villas in Tokyo’s upscale Motoazabu neighborhood costs less than half that of Hong Kong and is 45 % less expensive than London.

Mari Mochizuki, a single mother who sells songs and has been looking in vain for an apartment large enough for her music and possibly the addition of the cat, finds cold solace in that.

The 39-year-old is willing to locate a location that will maintain its resale value in the event that she must relocate for work. However, the possibilities she has seen in the city center are either too expensive or outdated, limiting her research area to the capital’s northern edges.

She remarked,” It seems like prices for every apartment of good dimension are blindly going away, even those out-of-the-way areas or with amazingly inexpensive interiors.”