- Client Media
Published: 30 May 2007
According to the Japan External Trade Organisation, Japan has a burgeoning property market whereby Australian Property developers are flocking to its shores, and investing in large construction.
Chasing Japanese assets, financial institutions like Challenger Financial, Allco Finance Group and Mariner Financial are all making substantial inroads into the market.
“Australian companies that are focused on property investments see Japan as the new market in which to invest,” according to Steven Fairbrother, JETRO.
“In the golden era of the mid 80’s to the early 90’s, property value in Tokyo metropolitan area was doubling every two years.
“This growth was based on the expectation of capital gains, rather than on yield return and with the Yen so strong, and interest rates low, it was a lucrative real estate market.”
With the stabilization of the real estate market resulting in positive GDP growth, an increase of 20% (2003-2006) in business confidence complemented by low unemployment , real estate investment has been given a boost.
“Rental prices are on the up and vacancy levels on the down,” said Mr Fairbrother.
“This has created a stir in the real estate market and Australian investors are reaping the rewards and investing heavily.”
The changes in the workforce in Japan with an envisaged 2 million people expected to leave the workforce alone, supply and demand has been questioned.
“Varying opinions on commercial and residential properties are topical right now, however, one thing for sure, there are opportunities and Australia companies are keen to leverage.”
Investing in Japan has reached its peak with real estate value at an all time low and the Japanese economy on the rise.
“Australia has a hot economy and there is a lot of money ripe to invest,” confirmed Mr Fairbrother.
“There are many similarities between Australia and Japan, with opportunities existing with similar demographics in spots like Hokkaido, not too dissimilar to how the Gold Coast was some years ago.”