Japanese Real-estate Investment Update IMPORTANT NOTICE: The information in this slides is strictly confidential. Please do not disclose any information either directly or indirectly to a third party without prior approval from HJRE. All information are given in good faith and are believed to be correct at time of dissemination but HJRE cannot and does not guarantee any rate of return or investment timeline based on the information presented herein. By reading and reviewing the information contained in this document, investors acknowledge and agree that HJRE, and/or its agents are not liable to any party for any loss or damage caused by the use of the information contained herein. This includes any errors or omissions contained in this document for any investment decision. Investors are required to conduct their own investigations, analysis, due diligence, draw their own conclusions, before making any decisions. Investors are to seek professional advice from accountants, lawyers, consultants, brokers or other professionals that are licensed, qualified or authorized for any issues concerning taxes or legalities or technical specifications related to the property.
HJ Real Estate is the gateway to Japanese and Singapore real-estate for International Clients. HJ Real Estate is the gateway to Japanese real-estate for international clients– whether you are a first-time investor; an institutional investor, or simply looking to purchase a luxury home in Japan. As a licensed agency in Singapore, we ensure complete legal compliance with local authorities while providing you direct access to additional financing options and tax advice. We are also an associated company of Housing Japan K.K, an international real estate broker in Tokyo, and HJ Asset Management K.K, an independent asset management firm. This relationship ensures we are uniquely placed to benefit from both our international position and a strong presence within Japan. We have an established history of providing a broad range of real estate services to clients in Japan and around the world. Our strength in various languages allows us to specialize in serving you in the way that suits you best. We are able to source the right property; arrange deal financing and structure, close contracts and if necessary, provide in- house property management services. 350 Orchard Road #21-07 Shaw House Singapore, 238868 +6562356866 www.hjrealestate.com.sg marketing@hjrealestate.com.sg
What’s happening in Japan?
Massive Growth in Japan Tourism 250% 25,000,000 INCREASE in 3 years Shinzo Abe returns, 18,750,000 Abenomics begins 12,500,000 6,250,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: JTB Tourism Research & Consulting Co. (http://www.tourism.jp/en/tourism-database/stats/inbound/)
Massive Growth in Japan Tourism Japan targets Tourist destination rank Best overall 40 million tourist by 2020 in 2015 experience Source: UNWTO Tourism Source: Trip Advisor World Highlights 2015 Edition City Survey No. Country No. Country # Tourist in 2015 83,000,000 1 France 1 Tokyo 75,000,000 2 United States 2 New York 55,000,000 4 China 3 Barcelona 32,000,000 8 United Kingdom 4 Istanbul 27,000,000 11 Hong Kong 5 Prague 19,000,000 22 Japan 11,800,000 25 Singapore
International Sports Events Tokyo taking advantage of improvements on already top class infrastructure. Potential economic impact of 3 trillion Yen (29.7 billion USD) Creation of over 150,000 jobs Construction budget of over 383 billion yen for 11 new facilities and renovation on existing facilities The Rugby World Cup in 2019 The Summer Olympics in 2020
Legalized Casino and Integrated Resorts Japan’s parliament passed a bill legalizing casinos in Dec 2016. ● Profits will be heavily taxed, which will be used to lower ● government debt, and increase public spending Major Casinos such as Wynn and MGM, Sands are among the ● operators that have expressed interest. Opening 2 Integrated Resorts could bring in US$10 bn. in revenue, ● wish potential for $30 billion if spread across the country. Bloomberg Industries Analyst indicated that Japan has the potential ● of becoming the next big thing beyond Macao. According to Bloomberg, the revenue of Macao’s Casino is $28.9 ● billion, Singapore $4.8 billion. The revenue of Pachinko in 2015 is $196 billion.
Special Economic Zones Proposed Special Economic Zones: Asian Headquarter District The Tokyo Metropolitan Government is advancing efforts to attract FOREIGN COMPANIES and further improve the INTERNATIONAL BUSINESS ENVIRONMENT within the special economic zones designated by the national government. Tokyo One-Stop Business Establishment Center Free business consulting services Subsidy program for expenses including recruitment costs Introduction of office space at reduced rates Tax incentives Immigration Act Low Interest Loans Quicker immigration process and simplified documents Tokyo plans to raise its contribution to the national’s nominal GDP by roughly 30% from 2014 to $1 trillion by 2020. Tokyo Gov. Yuriko Koike
Major Redevelopments in Central Tokyo 2 4 3. Otemachi 3 1. Olympic stadium 2. Nihonbashi By Mitsubishi By Tokyo Gov. By Mitsui 1 6 5 5. Toranomon 4. Yotsuya 6. Akasaka 8 By Mori Blg. By Mitsubishi By NSKRE 7 10 7. Shibuya 8. Hamamatsucho By Tokyu By Nomura Linear Train install 9 by 2027 9. Shinagawa 10. Olympic Village By Keikyu By Tokyo Gov.
Attractions of Tokyo, Japan World most populated city Source: various municipal web sites Rank 1991 2007 2025 1 Tokyo 32.5 Tokyo 35.7 Tokyo 36.4 2 New York 16.1 New York 19.0 Mumbai 26.4 3 Mexico City 15.3 Mexico City 19.9 Delhi 22.5 4 Sao Paulo 14.8 Mumbai 19.0 Dhaka 22.0 5 Mumbai 12.3 Sao Paulo 18.8 Sao Paula 21.4 6 Osaka-Kobe 11.0 Delhi 15.9 Mexico City 21.0 7 Kolkata 10.9 Shanghai 15.0 New York 20.6
Attractions of Tokyo, Japan 1 st Place in National image ranking Source: US Times No. Score City 1 77 Japan 2 72 Germany 3 71 Singapore 4 64 America
Attractions of Tokyo, Japan A safe and secure city Source: Tokyo Gov.
Attractions of Tokyo, Japan Largest City GDP in the world 1800 1350 900 450 0 Tokyo New York Los Angeles Seoul London Paris Osaka-Kobe Shanghai Chicago Moscow
Attractions of Tokyo, Japan World’s Top Gourmet capital Source: Michelin Guide No. Total City Stars 1 304 Tokyo 2 135 Kyoto 3 134 Paris The answer is Tokyo. 4 117 Osaka
Attractions of Tokyo, Japan Clean water and air Source: Tokyo Gov.
4 th Place in Global Power City Index Global Power City Index 2015 The Global Power City Index (GPCI) evaluates and ranks the major cities of the world according to their “magnetism,” i.e. their comprehensive power which allows them to attract creative individuals and business enterprises from every continent and to mobilize their assets in securing economic, social, and environmental Development. GPCI evaluates the comprehensive power of forty of the world’s leading cities according to six main functions 1. Economy, 2. Research and Development, 3. Cultural Interaction, 4. Livability, 5. Environment and 6. Accessibility, representing city strength.
JPN Real Estate Market Updates
World’s Cross Border in Real-Estate Trade 1000 750 500 250 0 London NY Tokyo Paris HK Shanghai Sydney Domestic Cross border London NY Tokyo Paris HK Shanghai Sydney Domestic 39% 68% 88% 60% 79% 69% 57% Cross border 61% 32% 12% 40% 21% 31% 43% Trade volume between 2011 2 nd Q and 2014 2 nd Q Source: Japan Real-estate Research Authority, based on Jones Lang Lasalle
List of Countries by Immigrant Population Immigrants Country Total Of World (%) Of National (%) United Arab Emirates 7,826,981 3.4% 83.7% Monaco 21,042 0.1% 64.2% Singapore 2,323,252 1.0% 42.9% Hong Kong 2,804,753 1.2% 38.9% Australia 6,763,663 2.8% 27.7% Canada 7,284,069 3.1% 20.7% United States 46,627,102 19.8% 14.3% United Kingdom 8,543,120 3% 11.3% Japan 2,437,169 1.1% 1.9% Source: UN Report Trends in International Migrant Stock: The 2015 Revision
World’s Most Expensive Cities in 2016 Buying price Rank City Price/Rent Ratio (x) Rent per Month ($) Gross Rental Yield US$ per Sq. M. London 34,531 31x 11,089 3.21% 2 25,551 36x 7,024 2.75% Hong Kong (22,814 in 3 (35x in 2013) (6,431 in 2013) (2.81% in 2013) 2013) New York 18,499 26x 7,225 3.91% 4 13,825 29x 4,744 3.43% Tokyo (10,784 in 8 (20x in 2013) (5,413 in 2013) (5.02% in 2013) 2013) 13,748 39x 3,498 2.54% Singapore (15,251 in 9 (35x in 2013) (4,332 in 2013) (2.83% in 2013) 2013) Shows the buying price, price/rent ratio, rent per month (US$), and gross rental yield (%) for a 120 sqm apartment. Source: Global Property Guide
World Comparison: Prices against average income and rents
JPN Economic Improvement
JPN Economic Improvement
Rental History per Square Meter in Tokyo (in ¥) Global Financial Crisis Abe returns, Abenomics Eastern Japan Earthquake Source: Housing Japan Historical Property Database
Tips for JPN Real Estate
Recommend
More recommend
