Tokyo’s implementation of a rule that requires all property buyers to declare their nationality is raising concerns among investors, according to analysts.
Japan’s shift from an ultra-loose monetary policy to gradual normalisation of its interest rates was also likely to force investors to reconsider whether real estate assets were still attractive, they added.
“Japan has had a really strong run for the last seven or eight years,” said Neil Brookes, head of Asia-Pacific capital markets at property consultancy Savills. “But generally, because interest rates have gone up so much, there’s definitely less demand for Japan.”
The world’s fourth-largest economy netted US$27.2 billion in property investment in the first half of the year, ranking second behind mainland China in Asia-Pacific, according to data tracked by MSCI.