- Wealthy internationals are purchasing newly built luxurious residences in Tokyo.
- It was reported that an apartment in the 64-storey tower The Kita was sold for around $50m, making it Japan’s most expensive apartment sold this year.
- Brokers have noted that international high net-worth individuals (HNWIs) view Japan as a reliable and attractive location to purchase a second property.
Tokyo is becoming more attractive to overseas HNWIs, having seen continued development of luxury property developments and a rise in purchases of second homes by wealthy internationals.
Last week, a penthouse residence with a rooftop infinity pool located at The Kita, a complex designed by acclaimed architect Kengo Kuma, was sold for approximately $50m by Westbank Corp., its Vancouver-based developer. The Kita’s 5,457ft² unit features forest views around the nearby Meiji Shrine.
Foreign investors are noticing an increase in luxury real estate purchases as more wealthy internationals based in Japan are taking advantage of the weakened yen and low interest rates. The most desirable apartments have outdoor pools and round-the-clock valets.
In February, Mitsui Fudosan Co., a primary developer, began selling 1,002 units at its Mita Garden Hills, among which was a three-bedroom apartment offered for $4.1m.
This saw the average selling prices of Tokyo area apartments double year-on-year in March, followed by increases of 60% in April and 48% in May, according to the Real Estate Economic Institute, a trend which is hoped to continue throughout 2023.
Post Lintel Investment Management, a real estate firm based in Tokyo, reports that luxury housing transactions by high net-worth customers from Hong Kong, Singapore and Taiwan have increased.
The firm says that the increase in international sales has been around 40% over the last two years.
Executive director Joey Yang attributes this growth to clients attempting to reduce risk by diversifying their portfolios due to increased geopolitical uncertainty related to China.
Tetsuya Kaneko, head of research at global real estate company Savills, suggested that the luxury real estate market in Japan has flourished since the full reopening of the country’s borders after the Covid-19 pandemic.
International HNWIs looking to Tokyo’s luxurious real estate market for a second home should ensure that they use a safe international payments service.
HNWIs should use our money transfer comparison tool to compare foreign exchange rates when looking to invest in overseas real estate with low-interest rates.
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