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U.S., Chinese investment funds rush to buy real estate in Japan

U.S., Chinese investment funds rush to buy real estate in Japan

Posted January. 13, 2015 07:11,   

한국어

Foreign capitals are buying en masse real estate in Japan, which has become cheaper than before due to the "weakening yen." If the 1980s was the era of Japanese capital’s "Buy America," now is effectively the era of global capitals` "Buy Japan."

The value of foreign enterprises’ purchase of Japanese realty came to 977.7 billion yen (8.24 billion U.S. dollars) last year, which accounted for 20 percent of all real estate transactions in the island country, the Nihon Keizai Shimbun reported on Monday.

Notably, Asian capitals including that from China are proactively investing in Japan. Shanghai-based Fosun International bought a portion of Shinakawa Seaside Park Tower in Tokyo, from JT, a Japanese tobacco company, for about 70 billion yen (590 million dollars) in December last year. Singapore’s Temasek Holdings also purchased office spaces within ‘Pacific Century Place Marunouchi’ building for about 170 billion yen (1.430 billion dollars) in October last year.

Foreign capitals are moving towards Japan’s real estate market not only because the falling yen but also easy credit due to quantitative easing policy in advanced countries.