Despite a historic increase in interest rates, and the likelihood of further rate hikes in the near future, international investor appetite for residential Japanese properties is showing no signs of faltering.
In fact, sentiment has been buoyed by ongoing rent increases as well as the accommodative stance by most Japanese financial institutions. In many urban centres in the country, declining affordability has spurred many locals to turn to the rental market.
Similarly, property purchases by locals may be tampered as Japanese banks prepare to increase lending rates. Last year, investment capital pouring into the residential Japanese market reached a record high of JPY904.3 billion, with both domestic and international investors actively closing deals.
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With property prices in Tokyo at near all-time highs, secondary cities like Osaka are on the receiving end of heightened investment interest. The scope of investment attention, and the attractiveness of the centrally-located Osaka properties, has spurred some agencies to ramp up their offerings of Osaka properties.
Singapore-headquartered FM Investment (FMI), an international agency and consultancy, has increased its line up of Osaka properties. This weekend, it will showcase several of its available projects at a property exhibition and seminar at Raffles City Convention Centre.
Osaka is the third-largest city in Japan, and the capital of the Osaka Prefecture. It is at the centre of the sprawling Keihanshin metropolitan area in Kansai – the second-largest metropolitan zone in the country.
For most Singaporean investors looking to add Japanese real estate assets into their investment portfolio, the country’s weak yen (relative to the Singapore Dollar), relatively low interest rates, competitive property prices (compared to Singapore), and high rental returns have made it an attractive alternative destination over Tokyo.
According to FMI, some of the preferred residential investment assets sought after by Singaporeans have been: strata units in centrally located condominium developments and detached houses within some suburban locations.
A few highly capitalised investors have also sought opportunities to be included in enbloc developments, and a segment that FMI says has seen growing interest among those investors who prioritise maximising rental returns.
One of the projects it is marketing is the 17-unit The Peak Shinsaibashi Reserve, a freehold project in Chuo Ward in Osaka. An already completed development that includes a retail shop, this 10-storey project features two-bedroom units of 294 – 310 sq ft, while the top floor unit is 468 sq ft.
Shinsaibashi is the leading shopping belt in Osaka and is the city’s landmark hub of commerce, retail, and lifestyle. Situated next to Dotonbori, Osaka’s iconic entertainment district, Shinsaibashi is akin to Singapore’s Orchard Road shopping belt.
On the other hand, Osaka’s Chiyozaki/Taisho district is the city’s blend of urban convenience and local flavour. Located in the Western part of Osaka, this district is also one of the prime riverfront neighbourhoods in the city – with the Kizu River and Taisho River abutting it.
This is also where FMI is marketing The Peak Chiyozaki Waterfront, a freehold 28-unit development. Set to be completed in January 2027, the development features a mix of units that span 304 – 309 sq ft.
FMI’s property exhibition and seminar will take place from Aug 29 to 30, from 11am to 6pm. It also plans to hold seminars on investing in Japan at 12pm and 3pm on each day. The event is located at the Mercury Room at the Raffles City Convention Centre.
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Frequently asked questions
Why are Singapore investors interested in Japanese property outside Tokyo?
Singapore investors are looking beyond Tokyo for Japanese property due to factors such as potential for growth, diversification, and opportunities in other cities like Osaka.
Which Japanese city is gaining more attention from investors besides Tokyo?
Osaka is gaining more attention from investors besides Tokyo.
What are some reasons investors are interested in Osaka’s property market?
Investors are interested in Osaka’s property market because of its growth potential and opportunities for diversification.
