Property in Japan: Where to Invest and Why Now is the Right Time to Buy

Words by Kissa Castañeda

July 30, 2021

TOKYO, JAPAN - JULY 20: Illuminated Olympic rings are seen in front of the Rainbow Bridge and the Tokyo Tower at night ahead of the Tokyo 2020 Olympic Games on July 20, 2021 in Tokyo, Japan. (Photo by Zhu Yaozhong/VCG via Getty Images)

Des cerisiers en fleurs et le mont Fuji sur une rive du lac Kawaguchiko Ã Kawaguchiko dans la prÃ©fecture de Yamanashi, Japon, le 8 avril 2018. (Photo by YOSHIKAZU TSUNO/Gamma-Rapho via Getty Images)

IZU PENINSULA, ITO, SHIZUOKA PREFECTURE, JAPAN - 2020/03/13: Cape Kadowaki - The stony coastline was created by an eruption of Mt. Omuro 4,000 years ago, while the lava flowed in the sea, then eroded by the tides and finally formed this scenery. The scenery is on such a wild scale, it lets visitors feel the power of nature. There is a hiking course of about 20 minutes along Jogasaki coast, which passes over the famous Kadowaki Suspension Bridge. (Photo by John S Lander/LightRocket via Getty Images)

Beautiful Japan autumn at Kumoba Pond or Kumoba ike of Karuizawa ,Nagano Prefecture Japan.

Cover Illuminated Olympic rings are seen in front of the Rainbow Bridge and the Tokyo Tower at night ahead of the Tokyo 2020 Olympic Games (Photo: Zhu Yaozhong/VCG via Getty Images)

From Tokyo to Hokkaido, there’s a growing interest in buying a home in Japan—here's how to get into the game

If watching the Tokyo Olympics has you fantasising about buying a home in Japan, you better act fast. According to Sotheby’s International Realty, enquiries on residential property in the country in March 2021 was “nearly five times greater than those received in March 2020.”

Considering how attractive Japan is as a travel destination—it hit a record 31.88 million tourists in 2019—it’s no surprise that there are people who want to splurge on something permanent in the Land of the Rising Sun. Here’s a primer on where to invest and how to find your dream home in Japan:

Above The Kita by architect Kengo Kuma, who was also behind the Olympic National Stadium in Japan (Photo: List Sotheby’s International Realty)

Above Expect streamlined interiors at The Kita, a luxury development in Tokyo (Photo: List Sotheby’s International Realty)

TOKYO

The capital of Japan, Tokyo is a sprawling city and a dynamic centre of fashion, design, and food (it holds the record of having the most Michelin-starred restaurants in the world). Home to almost 14 million residents, the megacity melds past and present beautifully and has a unique tapestry of districts offering plenty of choice for the discerning investor. Last year, average property prices in Tokyo’s central wards surged by 20 per cent despite the pandemic, with many buyers looking for larger units—a trend also seen in London and New York.

Tokyo is not short of luxury condominiums and one highlight is The Kita, which was designed by Kengo Kuma, the iconic architect behind the Tokyo Olympic Stadium. Luxury hotel brand Aman also announced an Aman Residences in Tokyo opening in 2023. It will take up floors 54 to 64 of the new Toranomon-Azabudai towers, the same building that will house Janu, Aman’s new hotel brand focused on wellness.

Above Stunning views of Mount Fuji at Lake Kawaguchi (Photo: YOSHIKAZU TSUNO/Gamma-Rapho via Getty Images)

LAKE KAWAGUCHI

A short train ride from Tokyo, Lake Kawaguchi is one of the picturesque lakes around Mount Fuji and has long been a popular day-trip destination for both local and foreign travellers. Today, the area also attracts international buyers looking for a long-term investment, and it's particularly sought-after by Chinese investors. According to Sotheby’s International Realty, high-net-worth individuals are searching for properties with views of Mount Fuji and of course the lake; some also look for homes equipped with swimming pools.

Above The amazing formations at Jogasaki Coast, Izu Peninsula was created by an eruption of Mt. Omuro 4,000 years ago. The lava flowed in the sea, then eroded by the tides and finally formed this stunning scenery (Photo: John S Lander/LightRocket via Getty Images)

IZU PENINSULA

With its rugged coastline, long stretch of beaches, and beautiful onsens, the Izu Peninsula in Shizuoka Prefecture was one of the Bubble Era’s most lucrative destinations for second homes. While it retains its upmarket feel, the area also draws artistic and adventurous residents who enjoy surfing, sailing, and ceramic making. Most buyers look for properties in Ito, Atami, and Izu Kogen area, where homes with sea views are very much in demand.

Above Autumn scenery at Kumoba Pond in Karuizawa, located at Japan's Nagano Prefecture

Above Designed by Shigeru Ban, Shishi-Iwa House is one of the many boutique hotels in Karuizawa

KARUIZAWA

Holiday homes abound in Karuizawa, a mountain resort destination in Nagano Prefecture, a comfortable two-hour drive from Tokyo. With the rise of remote working, there has been an increase in local buyers looking for spacious homes near Tokyo to make their primary residence. It also doesn’t hurt that Karuizawa has a buzzing food scene, plenty of design-led boutique hotels, and looks especially stunning in autumn.

Above The exterior of Aman Niseko, which will have a hotel and a villas to own (Image courtesy of Aman)

NISEKO

Think of skiing in Japan and Niseko would immediately come to mind. Known for its powder snow and family-friendly slopes, the ski town has seen an influx of new developments over the years ranging from small-scale property developers to global hospitality chains. Ultra-luxury players like Aman have also entered the scene—they've announced a new resort and residences for sale near Mount Moiwa. Properties in Niseko are particularly popular with buyers from China, Hong Kong, Australia, Singapore, and other Southeast Asian countries.

Above The stunning architechture of Prostyle Sapporo Miyanomori is designed by Kengo Kuma (Image: List Sotheby’s International Realty)

Above The units exemplify the essence of Japanese design (Image: List Sotheby’s International Realty)

SAPPORO

Sapporo, the capital of Hokkaido Prefecture, is also seeing an uptick in demand particularly as both local and international buyers look for smaller, less dense cities to move to. Located at the foot of a mountain near the ski jump stadium for the 1978 Sapporo Olympics, Prostyle Sapporo Miyanomori is one of the more special developments to peruse. Nestled in lush greenery, the luxury development is designed by Kengo Kuma and exemplifies the best of Japanese design.