Weak Yen & Open Borders!

Oct 21, 2022


As the Japanese yen weakens past 150 to the USD, open borders mean real estate investment has received a double boost!

After Japanese borders reopened to visa-free international travel this month, the first focus for most people was on booking their trip to see the beautiful autumn leaves or experience the bottomless Japanese powder snow.

But in the background the differing monetary policies of the Japanese government to almost every other country means the Japanese yen continues to weaken.

What does this mean for you?

Well, firstly anything you buy in yen is "cheaper" - as in it costs you less in your home currency. So it's great news for travellers booking and paying for their hotels and services in Japan for any upcoming trips. But it's also amazing for anyone making a bigger investment in Japanese property.

Broadly speaking all the property listings are now about 30% cheaper than the same time last year because they are priced in yen. So if you are investing from overseas and paying in foreign currency, now is an excellent time to take advantage of the weak yen and find that dream property!

While international tourism was on hold since early 2020, development was not! Many resorts have seen new hotels or land estates pop up during the past two years and as a result 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.

USDJPY2022 Oct21
The headline has been the USD to JPY exchange rate

The Weak Yen - updated mid October 2022

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 international buyers is that the weak yen means any investments are costing less in USD terms.

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 today (21st October 2022) and 12 months ago - figures as per google search.

Currency Yen 2021 Yen Today % Change
USD 113.8 150.3 32%
HKD 14.6 19.1 31%
SGD 84.5 105.4 25%

What should I do now?

Since borders reopened real estate transactions have gone through the roof, just as everyone expected once international tourism was able to return. 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.

Also check out this article about mortgages being offered to international investors by Global Mortgage Group.

Backcountry Hike Unsplash
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