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Evolving Cities, Intensifying Frontlines of Development
2025/6/20
Market Forecast Column
“Stronger Dollar, Weaker Yen” Triggered by Trump’s Policies —
What’s Happening Now in the Japanese Real Estate Market?
As former U.S. President Donald Trump returned to the political spotlight ahead of the 2024 presidential election, his sweeping economic plan — the One Big Beautiful Bill Act (OBBBA) — is beginning to influence global financial markets.
This bill marks a bold return to protectionism, with a blanket 10% tariff on all imports, additional tariffs on Chinese products, and consideration of a 24% tariff on Japanese goods. These measures are starting to affect the global exchange markets. The impact is already visible: a trend towards a stronger dollar and weaker yen has been fueled due to the accelerating inflation in the U.S. and expectations of further interest rate hikes by the Federal Reserve Board (FRB).
This foreign exchange environment is becoming a tailwind for the Japanese real estate market. With the yen depreciating, real estate in major cities like Tokyo, Osaka, and Kyoto appears “cheap” to foreign investors. In particular, capital from China, Singapore, and the Middle East into hotels, commercial facilities, and urban redevelopment projects is starting to flow back.
Another trend gaining attention is the reevaluation of “regional assets” and “stable income-generating properties.” Assets that are resilient to currency fluctuations and offer high-profit potential (e.g., tourism infrastructure, hot spring resort hotels, medical, logistics, and data centers) are drawing significant attention. In contrast, rising mortgage rates are putting the brakes on the U.S. real estate market. Meanwhile, Japan is emerging as a contrasting market. Amid heightened geopolitical risks, real estate is being reassessed as a “safe asset.”
A Report that Deciphers This Trend Early:
“Trump’s Policies and the Ripple Effects on the Real Estate Market”
In a landscape where currency fluctuations, policies, and geopolitical risks are deeply intertwined, where is the capital flowing in the Japanese real estate market today?
An essential analysis for investors, developers, and fund managers is now available.
[Read Now]▶︎ https://member.glocaly.tokyo/en/client/blog-detail/222
Contents: USD/JPY Forecasts / Investment Map by Key Cities / Trends among Foreign Investment Funds / Watchlist Sectors in the REIT Market
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