This may sound horrid since Japan just suffered this devastating earthquake and tsunami, its worst natural disaster, equal to the devastation seen in World War II according to the current Prime Minister Naoto Kan. But this might just be the opportunity the Rich Chinese are looking for to come in to swipe even harder at their real estate market.
With stringent controls of the property market back home, especially in tier 1 cities of Beijing, Shanghai, Hong Kong and many other provincial capitals, the cash rich upper-class are looking for stable investment classes to park their funds.
Although I wonder if this is healthy for the Japanese economy, but looking at it from a purely investment perspective, the Japanese government will be pumping in funds to rejuvenate their economy (which is already in a deflationary state), and to rebuild the destroyed regions and pay for the massive clean-up effort. Much of these funds will come of course from borrowings and further borrowings driving this former economic super-power further into debt. I feel so bad just writing about this. But all is fair in the business world – there will be rise and fall of economic prowess. But I have faith in the Japanese pulling themselves together and rebuilding their economy and their homeland!
Chinese take to Tokyo property market
Individual investors snatching up condominiums to protect assets
China’s drastic economic growth has prompted an increasing number of wealthy Chinese to cast their eyes on the Tokyo property market. Many are investing in Japanese properties to diversify their assets. While land prices have skyrocketed in Beijing, Shanghai and Hong Kong, prices in Japan have hit bottom.
Read this article HERE