Investors say now is time to buy in Tokyo ? Real Estate Japan ...

The 2012 annual report released by global property consulting firm, Jones Lang LaSalle, showed that foreign investors are purchasing Tokyo property once again, making the city the fourth most popular area in the world for real estate investment.

The Lehman shock in 2008 and the 2011 Tohoku earthquake and tsunami had pulled the real estate market down. Because of this, companies and investment firms like Minato Asset Management Co. Ltd., lost clients in the weeks after the disaster. However, according to Hirokazu Mukai, president of the company, there were still investors who pushed through with the deal, realizing how safe and well-built residential properties in Japan are.

But now that the situation at the Fukushima Daiichi Nuclear Plant has long-since stabilized, other concerns are being assured and foreign investors are coming back to Tokyo to buy property. In addition to this, the Japanese government?s plan to pull the economy from long-term deflation is starting to come together. Mukai believes that now is the best time to invest in property especially now that the government and the Bank of Japan have set a clear inflation target of 2%. He believes that investing in properties in Tokyo rather than in other Asian countries, is far better because the yield here is much higher and more stable. Investors choose Japan because real estate prices in other countries have been high for years and the risk of capital loss is higher compared to the Japanese market.

Based on experience, Mukai says that Tokyo?s 23 wards are the best areas to invest, although central areas do not provide the highest income. He says that though there may be a small possibility of capital gains in these areas, future development plans are needed for this to happen.

Mukai says that this improvement in the economy will have a positive effect on the real estate market. Still, experts do not rule out the possibility of an increase in real estate prices this year. In the future though, he believes that the property and investment industry could suffer from large number of vacancies in some areas. But even if the country?s population does not increase, investors could still benefit from increasingly stable incomes.

Source: JapanToday. Photo:?Ons

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Source: http://www.realestate.co.jp/2013/03/05/investors-say-now-is-the-best-time-to-buy-properties-in-tokyo/

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