2017-07-12

An Overview of Japan

Advice

Japanese real estate is attracting a lot of attention from abroad, as among the developed countries in Asia, the prices are relatively reasonable with stable yields.

Japan Basic Information

・Capital: Tokyo

・Area: 378,000 ㎢

・Currency: Yen (JPY)

・Language: Japanese

・Religion: Buddhism, Shinto, etc.

・Industry: manufacturing (Automobiles, electrical products, industrial robots, etc.), trading

・Population: Approximately 120,000,000 (2016)

Japan is located in the Pacific Ocean, it lies off the eastern coast of the Asian mainland, and stretches from the north to the south. The surrounding countries are Russia at Northwest, Korea and North Korea across the Japanese Sea, China and Taiwan across the East China Sea.

Japan had implemented an isolating country policy since the 15th century, but leading up to the visits of the missionaries and trading vessels from European countries, getting influences from foreign countries. After experiencing the wars against its neighbouring countries and the World War 2, even though it had gotten colonised by America at a moment, now has gone through high economic growth and successfully achieved the 3rd largest economy in the world.

As Buddhism and Shinto have been widespread across this country. Japanese culture has been deeply influenced by the traditional architecture and shrines from Kyoto and Nara.

Even though the number of Buddhists is now getting smaller, nevertheless Japanese people hold their celebrations at shrines and temples. Seemingly the traditional cultures are still remaining on the individual lands.

Japan has 4 seasons. As it's stretched from North to South, in the wintertime Hokkaido’s weather goes down to under 0 degrees, whereas Okinawa only goes down to 15 degrees in the same season. It has a rainy season around in June and the summer is humid and often stricken by typhoons. On the other hand, it has much snow on the coast by the Japanese Sea but gets very dry on the coast by the Pacific Ocean.

Population of Japan

(Edited the date from World Bank)

The population in Japan has started to decrease since 2016, which has been the first time since 1920, and it is speculated as going to continue.

Population by Age

（United Nations Department of Economic and Social Affairs Popular Division)

Furthermore, declining birthrate and ageing also have been considerable problems, and as the low birth rate goes on, a decrease of the labour force has been widely concerned.

Japanese Economy and Policies

By the GDP of Japan itself, Japan is right after China and America, the 3rd largest in the world and still continues growing. The tertiary industry has been outstandingly developed, manufacturing and trading are its strength. In part, automobiles and IT technologies are considered as the highest level in the world.

On the other hand, it's the top amongst creditor nations and the decrease of population is also getting problematic. Moreover, the consumption tax is planned to be raised from 8% to 10%, which is considered as a feasibility of economic depression, meanwhile, there is a great expectation for 2020 Tokyo Olympics.

Looking at the growth rate, up until the 1970s was a definite substantial high economic development period, subsequently, it showed stable. Now it's about to start a negative growth period. Under the influence of the world economic crisis in 2008, it marked the first -3.5% in the post-war era, then leading up to the Fukushima earthquake in 2011 and new consumption tax 8%, the economy fluctuates but still continues growing stably.

Furthermore, the Philippines has advantages, such as the second largest population in ASEAN and English language skills. It is going to keep expanding its call centre and BPO industries. On the top of that, by the background of entries from foreign companies and massive exports, it is speculated to keep a stable growth.

As Japan is preparing for 2020 Tokyo Olympics, it's facing with a rush of developments. Especially, the central area of Tokyo (Otemachi, Marunouchi, Yurakucho) is focusing on a business office building, Nihonbashi-Yaesu-Ginza area is shopping and tourism focused, and Toranomon-Roppongi is also business office focused. Furthermore, there will be a new station in the course between Shinagawa station and Tamachi station. In addition, the neighbouring areas around Shinjuku and Shibuya is under redevelopment. In regards to the railway, a linear motor train (a new type of bullet train) is going to be open between Tokyo and Nagoya in 2027, between Tokyo and Osaka in 2045.

Japanese Property Investment

In recent years, the investment of the Japanese real estate is dependent on the decision of Tokyo Olympics and the background of depreciated yen. On top of that, the Japanese real estate is relatively cheaper than that of other countries, which in this case benefits are possibly expected. The attraction is that regardless of whether foreigners or Japanese citizens, the buyer is allowed to own the land for an indefinite period, additionally trading and inheritance is also allowed.

If you have any questions or would like to arrange a viewing, please feel free to contact us!