Weak yen attracts Hong Kong buyers to Japan
April 21, 2015 - Japan
Joe Law Hin-pong, managing director of JL Advisers, said the favourable exchange rate and high yields were the reasons many Hong Kong individual and institutional investors had decided to invest in Japanese property since mid-2013.
"Individual investors are buying small, one-room apartments in the city area in Tokyo while institutional investors are buying big blocks of residential and commercial buildings," Law said.
"The trend is likely to continue as there are few markets like Japan which can offer a stable yield and capital gain. However, investors must also be aware of the currency, location and earthquake risks."
[...] Japan's property prices have fallen 70 per cent over the past 16 years, according to accounting firm Deloitte.
[...] A 350 sq ft, one-room apartment in Tokyo costs only about 35 million yen (HK$2.27 million) to 40 million yen.
In contrast, Hong Kong property prices have kept setting record highs in the past two years despite the government's introduction of measures such as double stamp duty.
Read the rest of the story @ SCMP.com
Trends, property investment, Investment property, foreign investors