A combination of favourable conditions – a weak yen, tourism growth and attractive rental yields – is driving unprecedented Singaporean interest in Japan’s property market.
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Just a few years ago, FM Investment held sales events in Singapore for Japanese real estate once every couple of months. This year alone, the investment firm has organised at least 15 events for 12 boutique developments across Tokyo, Osaka, Nagoya and Kyoto.
Even more striking is that Singaporeans have displaced Hong Kong investors as the firm’s largest buyer group, now accounting for half of all transactions – up from 30 per cent last year.
The numbers tell the story across the industry. Property seminar attendance has risen, with flats taken up on the spot.
A two-bedroom unit in Tokyo’s Asakusa district was sold for under S$500,000 (US$386,000) at OrangeTee’s first official Japanese property event last month.
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Savills Singapore sold out all 60 units of a boutique Osaka development in July, with half going to Singapore-based buyers.
The yen’s sustained weakness has significantly enhanced purchasing power for foreign buyers. At current exchange rates, one Singapore dollar is worth 117.6 yen – about 12 per cent more than three years ago, when Japan reopened its borders to international travellers.