The implementation of a rule in Tokyo requiring all property buyers to disclose their nationality is causing concern among investors, analysts report.
Furthermore, Japan’s transition from an ultra-loose monetary policy to gradual interest rate normalization is expected to lead investors to reevaluate the appeal of real estate holdings.
Neil Brookes, head of Asia-Pacific capital markets at Savills, stated, “Japan has had a really strong run for the last seven or eight years, but generally, because interest rates have gone up so much, there’s definitely less demand for Japan.”
Japan, the world’s fourth-largest economy, recorded US$27.2 billion in property investment during the first half of the year, placing it second in the Asia-Pacific region behind mainland China, based on MSCI data.