Recently, the news about Chinese flocking to Japan to buy a house makes people sigh: live a long time!In the past, it was often heard that foreigners came to China to invest in real estate, but now it is Chinese who wave cash and sweep the Japanese property market. According to reports, Chinese account for a staggering 80% of foreign property buyers in Tokyo.
This cross-sea boom in buying houses seems to be sudden, but in fact, there is an unknown financial logic behind it. Japan's real estate market has not always seemed to be the "sweet spot" in the eyes of the outside world, but recently, the continued depreciation of the yen has made the island nation's property market a new favorite for overseas buyers. In 2023, the value of the yen plummeted by more than 15%, reaching its lowest point in nearly 33 years. This is undoubtedly a home purchase discount for overseas buyers with foreign currency.
The reason why the yen is so large is not unrelated to the Fed's interest rate hike policy, which led to a large sell-off of the yen in the currency market. Now, as the Fed's interest rate hike is nearing its end, coupled with the outbreak of the bank credit crisis in Europe and the United States, global funds are looking for a safe haven, and the yen, as one of the three safe-haven currencies recognized in the world, has naturally become a hot commodity.
Many speculators seem to have sniffed the subtle changes in the market, and they see this as an opportunity to lower prices and look forward to future appreciation. But you may ask: why should you choose real estate as an investment?The reason is simple, robust. The rent-to-sale ratio of real estate in Japan is about 5%, which means that the annual rent of a house is about 5% of its total value, and the rent can be paid back in 20 years.
The stability of the rental market is undoubtedly good news for investors. The "flat-flat" phenomenon in Japanese society, as well as the cautious attitude of young people towards job hopping, means that tenants are likely to live in the same property for a long time. As a result, the situation of Chinese landlords collecting rent seems to be stable, and Japan** naturally welcomes this.
However, any investment is risky, and the Japanese real estate market is no exception. Although it seems to be a good time at present, the handling fee is expensive, and a series of taxes and fees such as value-added tax, stamp duty, and fixed asset tax have made the investment cost rise significantly. What's more, there are obvious signs of a bubble in Japan's housing prices, and Tokyo's housing prices continue to **, and this bubble may burst at any time.
Investing in overseas real estate is not an easy task for ordinary people, not only in terms of cost, but also in terms of adaptation to culture and living habits, as well as consideration of natural disasters such as ** and tsunamis. So, for most of us, this feast of Japanese real estate may just be a long-distance bustle.
This incident tells us a truth, investment needs to be calm and rational. No matter how the market changes, we should make decisions based on our actual situation. And for such a big move as multinational real estate investment, it is better to be cautious.
We'd love to hear from you on this hot topic. What do you think of the behavior of Chinese people buying houses in Japan?What are your thoughts on investing overseas?Please leave your views in the comment area, and we will make progress together.