New property purchase disclosure rule in Japan sparks fears it may curb foreign investment
Rising interest rates and new legislation on nationality disclosure are raising concerns that foreign investors may reconsider real estate investment
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.
