1. The Japanese economy is expected to see the highest growth in 2023 among G7 countries, with inflation and interest rates remaining low. This has led to a weak yen, making Tokyo real estate an attractive investment opportunity. 2. Tokyo real estate prices have been on an upward trend overall, recovering from the 1990s economic slump, with central areas within a 10km radius of the CBD considered a safe investment. 3. The document recommends buying older but cheaply priced apartments in downtown and prime areas of Tokyo, expecting capital appreciation as prices rise moderately. Specific investment properties are presented as examples.

1. Japan Market Update
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Manabu Suzuki
March 15, 2023
Cheap Yen, Steady market and BARGAIN opportunities
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2. Japan is just like anywhere in the World.
We enbrace “new normal“ post-COVID days.
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Dri/
People are back in
works in Tokyo CBD
from teleworks
People start travelling
and drinking. Regained
pre-COVID activity level.

3. In 2023, Japan is expected highest growth
in G7 countries, first time in 30 years.
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Japan 1.8%
Canada 1.5%
USA 1.4%
France 0.7%
Italy 0.6%
Germany 0.1% UK minus 0.6%

4. In 2022, Japan enbraces lowest inflation rate
in G7 countries.
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Japan 3.0%
France 5.5%
Canada 6.9%
USA 8.2%
Italy 8.9%
Germany 10.0% UK 10.1%

5. Japan still manages exceptionary low
interest rate in G7 countries
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Japan 0.50%
Germany 2.37%
France 2.86%
Canada 3.17%
UK 3.56%
USA 3.75% Italy 4.27%

6. Low interest rate means Cheap Yen
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100 JPY equates
US 74 cents
Euro 70 cents
Pounds 62 cents
Canada 1.0 dollar
Aussie 1.1 dollar
It was approx 90 US cents
a year ago, before FRB
raises US interest rate.

7. 7
Why asset funds flock in Tokyo market?
In the eye of institutional investers and fund managers, Tokyo’s
property market is considered ‘goldilocks‘, in short-mid term.
１） Modest inflation
2) Low interest
3) Cheap yen
4) Modest rental return
5) Modest capital appreciation
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8. Tokyo property is in long-term upward trend
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Before 1990 Japanese economic miracle
1990 - 2010 Sluggish ‘Lost two decades‘
After 2010 Picks up again (only Stock market and Tokyo property)
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9. Tokyo is exceptional in Japan
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Tokyo is the only Japanese city that exceeds 1991peak
Tokyo 38.5M/㎡(1991)→12.9M/㎡（1997）→40.1M/㎡（2016）
Osaka 35.0M/㎡(1991)→4.6M/㎡（2004）→13.8M（2016） @39%
Nagoya 28.0M/㎡(1991)→4.0M/㎡（2004)）→9.3M/㎡（2016） @33%
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10. Tokyo property gains during COVID-19
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During 2020 (COVID) Tokyo new apartment price is up
・Tokyo average 72.8M→77.1M（5.8％↑） Per sqft $933
・Tokyo uptown 86.2M→95.9%（11.2％↑） Per sqft $1148
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11. Tokyo’s safe haven : 10 km radius from CBD
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Tokyo version of London’s zone 1/2/3 is “inside 8th ring road
and Arakawa river” (roughly 10 km from the Center), where
global investor buys and property value keep increases.
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12. Investment recommendations
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Savvy investors looks into ‘low per sqft‘ priced apartments
Buy cheap and enjoy capital appreciation. It is relatively
common for built year 1980s - early 2000s.
My expectation is... 50% of newly built apartments.
- $465 per sqft or lower for Tokyo downtown
- $574 per sqft or lower for Tokyo uptown
- $700 per sqft or lower for Tokyo prime location
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13. 13
1）Asakusa apartment - Tokyo downtown
Built year1983
3 min walk from station
$201,400 (26.99M JPY)
Floor area 540 sqft
NOI 4.02%
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2）Chiyoda apartment - Tokyo Prime Location
Built year 1984
2 min walk from station
$259,700 (34.80M JPY)
Floor area 433 sqft
NOI 3.90%
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15. http://ipag.jp
Our Website
We work with you for successful deals and
provide property management in Tokyo
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