As Central Banks across the world battle inflation, the weak yen means there has never been a better time to invest in Japan.
While interest in Japanese resort real estate is always strong, the number of transactions in recent months is hitting all-time highs thanks mainly to the weakness in the yen compared to other major currencies.
The benchmark USD - JPY exchange rate has traditionally hovered around 100-110 JPY to the dollar. This all changed in 2022 and now one dollar will get you 140-150 JPY, meaning that your Japanese property investment could be 50% cheaper than just a couple of years ago!
The Weak Yen - updated mid July 2023
Most real estate transactions in Japan are completed in Japanese yen (all pricing on Uchi is in yen with indicative USD values) and the good news for buyers is that the yen is remaining weak. While foreign exchange rates are notoriously volatile, this trend has been in place since early March 2022 and affords you a real opportunity to save significantly on your real estate investment in Japan.
How weak? Well have a look at the table below that compares the price of yen at the end of June 2023 versus the summer before Covid - figures as per google search.
| Currency | Yen 2019 | Yen Today | % Change |
|---|---|---|---|
| GBP | 130 | 182 | 40% |
| SGD | 76 | 105 | 38% |
| USD | 107 | 144 | 35% |
| HKD | 13.5 | 18.2 | 35% |
| CNY | 15 | 20 | 33% |
With major currencies strengthening at 30-40% against the yen, your hard-earned dollars and cents really can go much further in Japan, especially when coupled to rising costs due to inflation around the world.
What does this weak yen mean for me as an investor?
Well broadly speaking all the property listings on Uchi are now about significantly cheaper than they were pre-pandemic because they are priced in yen. So if you are investing from overseas, now is an excellent time to take advantage of the weak yen and find that dream property!
Any other reasons now is a good time?
Of course! While international tourism to Japan basically stopped during the pandemic, it has come roaring back making Japan once-again the go-to destination in Asia. Coupled with excellent new developments, there any resorts have seen new hotels or land estates pop up during the past two years, there is a lot of stock available, both new and on the resale market. This is good news again for buyers because you have more choice to pick from and, potentially, an eager seller will be more willing to negotiate the price.
That said, we know how hot the real estate market is in Japanese resorts and everyone is expecting a quick and strong rebound as soon as borders open. So don't wait around - search through Uchi and see what is available that ticks your boxes, contact the trusted and licensed real estate agents and then come to enjoy your new property! We have properties from all over Japan - Okinawa to Hokkaido - so don't miss out on this great timing.
