The Yen Just Keeps Getting Weaker And Weaker!

Jul 12, 2022

Yen Dollar

The Japanese yen continues to weaken meaning any investment from overseas just got even cheaper!

Interest in real estate in the top Japanese resorts has remained strong throughout the pandemic, but with entry restrictions in place for most of the past two years the number of transactions has definitely been lower than normal.

And with the borders now slowly opening to business travellers and limited tourists, agents are seeing more people on the ground looking at land and properties.

However, the real excitement lies in the incredible value currently being afforded by the weak yen. Compared to 12 months ago the US dollar has jumped from around 110 yen to 138 yen as of today - that means any investment paid in JPY is 25% cheaper.

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The Weak Yen - updated mid July 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 buyers is that the yen is continuing to weaken. 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 (12th July 2022) and 12 months ago - figures as per google search.

Currency Yen 2021 Yen Today % Change
USD 110 138 25%
SGD 81 98 21%
HKD 14.2 1675 23%
CNY 17.0 20.4 20%

Almost all of this movement has come in the past few months, but with the elections for Japan's parliament completing last weekend, the new government may move to tighten the slide in the yen's value.

What does this weak yen mean for me as an investor?

Well broadly speaking all the property listings are now about 20-25% 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!

Any other reasons now is a good time?

Of course! While international tourism has largely stopped since early 2020, development has 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.

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.

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