The Japanese property market has witnessed a significant surge of overseas capital in recent years, with many foreign investors targeting first-tier cities such as Tokyo and Osaka, especially in the booming sector of vacation rentals. Investors are capitalizing on these multipurpose properties to generate steady rental income, earn foreign currency, and serve as personal residences.
According to Keith Wong, TY-PROPERTY’s Property Development Manager, and Chikako Okuyama, Manager, the Japanese property market is set to usher in a golden era for investors, with promising potentials for appreciation.
High rental yield
They point out that in locations near the city centre, typical premises are priced at approximately 1,000,000 yen or above for houses and 650,000 yen or above for apartments. The rental yield is attractive, ranging from 8% to 10%, making Japan an appealing investment destination for investors seeking stable and profitable returns.
Immense Investment Potential
Okuyama highlights a number of international events that will take place in Osaka, including the upcoming Osaka Expo, and the opening of Japan’s first casino by 2029. These mega events are expected to attract a large influx of tourists, creating a favourable environment for investment in vacation rentals and capitalizing on the reviving tourism industry in Japan.
“Investors should focus on prime locations near railway stations and popular tourist areas where rental demand is consistently high. These strategic locations ensure a steady stream of income and the potential for long-term growth,” Okuyama notes.
Launching ‘Tea 2 Osaka’
To meet rising demands for investment in the Japanese market, TY-PROPERTY has launched a vacation rental residential project named ‘Tea 2 Osaka’. This 4-storey property comprises 1 retail space and 19 residential units, with an average size of approximately 323 sq. ft. The residential units are designed with a 2-bedroom layout and the project’s main highlight is the self-contained Japanese-style courtyard, which appeals to vacation rental guests. The project is priced from HKD 650,000, and the price per square foot starts at just HKD 2,000.
Nestled in Osaka’s prime location near both Tengachaya and Kishinosato stations, the property is just a 7-minute walk away, offering direct access to Namba Station within 3 stops. Tengachaya Station on the Nankai-Kuko Line also provides a convenient 30-minute connection to the airport and popular attractions nearby, like Shinsaibashi, Dotonbori, and Tsutenkaku.
Benefiting from its exceptional location, the project is also surrounded by abundant amenities that enhance the overall living experience. Tengachaya Station features QANAT MALL, offering supermarkets, eateries, and a range of daily necessities. A nearby shopping street boasts diverse restaurants, beauty salons, and shops. Visitors can also find indoor tennis courts, convenience stores, and large supermarkets in the vicinity to meet various needs. A special bonus to Tea 2 Osaka homeowners and guests is the 1-minute walk to Tengachaya Park where they can enjoy the fascinating cherry blossoms in spring.
Wong believes the coming decade offers significant opportunities for rewarding investments in the Japanese property market. “Investors looking for properties with exceptional potentials can rely on TY-PROPERTY’s experience, expertise and commitment to deliver the goods,” he says.
