Tuesday, May 19th, 2009
We have seen Japanese real estate market around Tokyo is getting active these days.
We exchage contracts every month and close deal every month with Japanese clients. I recognize information time lag in between Japanese street smart and none native people from overseas.
(We have done transaction with Chinese lady who speaks fluent Japanese this month.)
Positive factors for Japanese real estate
・Major economic powers, G20, implemented enourmous financial and fiscal policy to prevent further deep recession.
・Japanese goverment changed tax benefit to support first time home buyers.(on loan transaction)
・Japanese goverment modified tax code for corporation for fixed asset purchase.(on corporate tax for fixed assets)
・BOJ keeps and will keep lower interest rate at 0.1%.
・Major banks attitude are getting aggresive after fiscal year end. (March 31, 09)
・Japanese goverment is discussing tax benefit on gift tax for kids to buy or build house or apartment…
Negative factors for Japanese real estate
・Japanese birth rate is still very low and population will not grow.
・Goverment assets, so called “Maizou Kin”, is not sold very well.(According to Nikkei News Paper)
Supply of land is expected in the future.
・Economic recovery is not strong enough compared to other developing countries such as China.
・Global crisis may not be over.
Through our business activity, we have lots of buying demand for commercial properties from Japanese clients. They can not see good investment opportunities in stock and bond market domestically. They bought high yeild commercial properties such as dormitories, office buildings and so on. (7%-12% gross yeild)
Evidence of bottom
We had lots of buying orders from clinets, but they could not buy such properties at their expected level. But somebody bought them at higher level than our clients. Seeing these transacions, I am confident to say Japanese “commercial properties” are bottomed out around this Feburary.(Please ask detail…)
However, residencial properties are not yet bottomed out, but it is bottoming out now. Since potential buyers are moving very active to catch bargain deal at this bottom.
This is first page of our blog. We would like to provide English written vivid information to people from all over the world. (by Hirokazu Mukai CEO)
Real estate web site in Tokyo Minato ku, http://www.realestate-minato.com/
Posted in admin
Posted in Tokyo real estate market, Tokyo real estate view