High-end Realty Specialist

Japan’s Economic Trends in 2023 Tokyo Real Estate Market Outlook

The Tokyo real estate market is generally considered to be a promising year in 2023, and people from all walks of life are confident that the Japanese economy will recover. Follow GLOCALY for the latest information on the Japanese real estate market and the opportunities for real estate investment.

Let us tell you what three factors are influencing Japanese real estate prices.

Inflation

Inflation is accelerating in Japan due to a shortage of supply of various commodities and interruption of logistics, and as a result of continuous “inflation” and “depreciation of the yen”, the Japanese real estate market is affected by this, and the prices of various construction materials and housing equipment Prices are rising and delays in supply are also causing construction costs to rise sharply, the outlook for general business plans is becoming unstable, prices of goods, both large and small, are tending to rise in the future, the ability to preserve the value of cash is low, and the demand for safe-haven investments such as securities as well as real estate is increasing, further driving property market prices.

Foreign capital inflows

The Japanese government has increased its tourism-related budget for 2023 by 38% to 30.7 billion yen in response to the epidemic and the opening of inbound tourism around the world to fully recover the tourism industry. Since October 2022, controls on foreign visitors to Japan have been relaxed, leading to an increase in the number of tourists, which doubled to 930,000 in November 2022 compared to October. The number of visitors to Japan, mainly from China, is expected to increase significantly in the future due to the end of China’s “zero policy”, and domestic tourism demand is also expected to recover due to the implementation of the National Tourism Support Program. In the past, when the number of foreign tourists exceeded 30 million, the growth of inbound tourism led to a boom in tourist attractions and downtown business facilities, which significantly impacted the economy and real estate prices. If inbound tourism recovers in the future, commercial facilities, tourism and transportation industries, and services centered on hotels and restaurants will expand, leading to an increase in the number of workers, store rents, real estate prices, and land prices in commercial areas.

Urban re-development

In the center of Tokyo and other key areas, the Japanese government is making every effort to reorganize the urban area. The Haneda Export Garden, a mixed-use facility for accommodation, international exchange, and tourism, will open in January 2023. In March and April, Tokyo Midtown Yaesu, located near Tokyo Station, and Tokyu Kabukicho Tower in Shinjuku will also open. The real estate market in Tokyo is full of potential, and the implementation of redevelopment projects shows that Japan’s economy has started to recover from the recession caused by the epidemic, and official land prices are expected to recover further in 2023. The potential demand for investment condominiums is likely to surge in the future. Economic trends and the real estate market will be in good shape in 2023.

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