In recent years, real estate in Japan, especially in central Tokyo, has attracted attention from overseas investors, especially wealthy investors in Asian countries such as China, Hong Kong, Taiwan, and Singapore.
Japan is considered a country with low country risk. The country risk is a risk unique to each country based on social conditions and other factors.
If the country risk is high, it means that the country is an unfavorable one to invest in.
Country risk is considered an important factor for international investment because invested assets are lost due to sudden changes in society, which poses a significant risk.
If the country risk is low, it means that a sudden fall in real estate value is unlikely.
Therefore, because of the low risk, overseas investors are willing to invest in Japan.
On the other hand, since Japan is already a well-developed country, the soaring of real estate value as a result of rapid development as seen in developing countries is unlikely in Japan.
Although low-risk investments produce small profits, Japan is still an attractive country to invest in.
In Japan, there are no restrictions on foreigners purchasing real estate.
Although unfamiliar in Japan, in China, for example, land belongs to the country and cannot be purchased or owned, even by citizens.
When building a house, a usage fee must be paid to obtain the right to use the land.
Singapore also prohibits foreigners from purchasing or owning land.
Australia has restrictions on the purchase of second-hand property by non-resident foreigners.
It is stipulated that only new properties and land can be purchased.
In Japan, however, there are no restrictions or additional taxes on foreigners purchasing properties or land.
Japanese and foreign nationals can purchase real estate under the same legal and financial conditions.
So, Japan is one of the few attractive markets in the world where non-citizens can easily invest in real estate.