Now is an excellent time to buy resort real estate in Japan with a combination of the weak yen and excellent choices of properties
Interest in real estate in the top Japanese resorts has been 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.
However, with the borders now slowly opening and some light at the end of the tunnel this really is an excellent time to look into your next (or first!) investment in Japanese real estate. Let us tell you why!
The Weak Yen - updated end April 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 weakening fast at the moment. While foreign exchange rates are notoriously volatile, the weakening of the yen is 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 (30th April 2022) and 12 months ago. Almost all of this movement has come in the past month
| Currency | Yen 30 April 2021 | Yen 30 April 2022 | % Change |
|---|---|---|---|
| USD | 109 | 130 | 19.2% |
| SGD | 82 | 94 | 14.6% |
| HKD | 14.1 | 16.5 | 17.0% |
| CNY | 16.9 | 19.6 | 16.0% |
| EUR | 131 | 137 | 4.5% |
| GBP | 151 | 163 | 7.9% |
Almost all of this movement has come in the past couple of months as shown by the graphs below - this highlights the great opportunity to invest in Japanese property right now!
What does this weak yen mean for me as an investor?
Well broadly speaking all the property listings are now about 10-15% 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!
