Tokyo Real Estate Investment can be a profitable decision for Hong Kong and Mainland Buyers

  • Advice

When individuals want to compare the cost of living in Hong Kong vs. Tokyo, it is better to identify the key determinants to get an accurate view of which city is more secure in regards to Real Estate. According to Real Estate investors and agencies, Tokyo Property is much cheaper than Property in Hong Kong. We combine the following factors to see if investing in Tokyo real estate is a wise decision compared to Hong Kong:

  • Affordable Real Estate
  • Stable Rental Value
  • Price Growth in Tokyo Real Estate
  • Quality Life Style
  • High Technology

Affordable Real Estate:

In Hong Kong, Real Estate value, is ranked as the second most expensive property in the world after London, but Tokyo is the least expensive real estate among the most developed cities in the world such as London, Singapore, New York, Hong Kong, and Berlin, etc. According to global property guide, Hong Kong real estate per square meter ($26, 325) is much higher than Japan real estate per square meter ($16,322). For Hong Kong and Mainland China second home real estate investors, Tokyo Real Estate is a wise decision.

Stable Rental Value

Japan is considered a stable economy regarding the rental income. It is because the rental agreement between the owner and tenant starts at two years. The investor will be less worried about the real estate in Japan as the tenant is already guaranteed to be in place for at least two years. In Japan most foreign investors consult with real estate agencies that provide property management services along with their purchase. They look after the property on behalf of the property owner and submit all taxes related to the property on time.

Price Growth in Tokyo Real Estate

Recently, Japan's government has adopted an open tourism policy, according to data, in 2020 it is expected that 40 million tourists from around the globe especially neighboring countries such as China, Thailand, Malaysia and Vietnam will visit Japan. The upcoming 2020 Tokyo Olympics will have a direct positive impact on real estate. A lot of commercial developers are investing in Tokyo real at the moment as there is a high demand for hotels to accomodate guests and tourists during the Olympics.

Quality Life Style

Japan is famous for its widespread mountains, parks, and high-quality lifestyle that attracts millions of people around the globe. The beautiful wooded houses show a distinctly urban style that is Japanese. They are also one of the most law-abiding people in the world and therefore maintains one of the lowest crime rates. As a result, the standard of living in Japan has increased dramatically. On the other hand, Hong Kong is a high-density populated city with an objectively lower quality of life in housing in comparison to Japan. This is because of the cramped living conditions in Hong Kong apartments. For a much lower price Hong Kong buyers can buy a relatively large unit in Japan as compared to Hong Kong.

High Technology:

Japan is famous for its high technology advancement in comparison to other countries. There are several reasons why Japan is one of the most attractive choices for countries such as China, South Korea, Malaysia, and Vietnam to come purchase electronics from. One unique character of Japanese vending machines that is famous around the world, is that you can purchase almost anything from them. Japan has a reputation for innovation, and it's vending machines are often its flag-bearers. On the other hand, Japan has become the most advanced robotic country, accounting for more than 50% global business in the industrial robotic category. Japanese culture supports a technology-based environment which is the key to making them No. 1 in technological. This also carries over to some of their housing which has smart home features.

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

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