Japan Property News

Tokyo back on top: best investment city for 2014

Asia Pacific saw a huge shake-up in its investment markets in 2013, with Japan reclaiming its spot as the region’s most popular investment destination for the first time since 2009.

This year’s Emerging Trends in Real Estate Asia Pacific report from PWC put Tokyo in the top spot for city investment prospects in 2014.

Japan as a whole has made a massive comeback this year. In late 2012 Prime Minister Shinzo Abe introduced far-reaching reforms: the devalued yen has had investors snapping up property as the market becomes more affordable, while the country’s renewed willingness to invest overseas has put it back on the world stage.

Lombard Street Research’s recent report “Japan’s House party” noted a resurgence in Chinese investment into Japan.

“Tokyo’s appeal is obvious,” said the PWC report. “When you have a government desperately trying to stimulate inflation and that likes handing out money to the the JREITs [Japanese real estate investment trusts]… you’d expect there to be some positive movement.”

On top of Tokyo’s victory, Osaka has now edged into number nine in the city investment prospects list, after several years near the bottom of the chart. The report put this largely down to the city working through its “glut of oversupply”.

Meanwhile, Indian cities remain near the bottom of the investment prospect rankings as authorities continue working through regulatory and economic issues. Mumbai has plummeted from third in 2011 to 23rd in 2014.