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Japanese properties attracting international buyers.

Thursday, December 23, 2010

International real estate portfolio investors from the United States to Singapore are increasingly looking to buy property in Japan with over $2 billion in deals already agreed this year, it is claimed....

............Franklin Templeton is understood to be looking to buy a portfolio of distressed loans at a discount, which would provide attractive returns and allow access to physical assets, while Blackstone plans to buy Morgan Stanley’s loans which are backed by commercial real estate such as office buildings.
Wealthy Chinese investors are also increasingly looking to Japan and a number of travel agencies have started offering Buy Japanese Property tours. Realtors say major foreign private equity groups, real estate trusts and realtors have earmarked an estimated $6.6 billion for investments in Asia, showing interest in Japan’s bricks and mortar assets and property debt.
‘While we are cautious around the country’s fundamentals, we do believe that the sheer size of the market allows for opportunities,’ said Peter Kim, managing director, ING Real Estate Investment Management, which has funds invested in Japan......

........Distressed or marked down properties in Japan, such as debt backed by commercial real estate, are also emerging on the radars of foreign buyers. ‘We are finding a degree of success in finding deals through trust banks or lenders who have taken control of over leveraged assets,’ said Jacques Gordon, global investment strategist at LaSalle Investment Management.
As foreign money pours in, the real surge in buying may just be starting, according to Mark Brown, a real estate analyst at researcher Japaninvest. The gap between what distressed property owners are asking and the amount buyers are willing to pay is closing fast, he said, adding that would lead to plenty of new deals. 

Source: PropertyWire

Related post:
Japanese real estate: Has it bottomed?


Anonymous said...

"Wealthy Chinese investors are also increasingly looking to Japan and a number of travel agencies have started offering Buy Japanese Property tours. "

I would give this a pitch of salt. These kind of tour are everywhere and daily. Regardless of the type of properties. The key aspect for this group of buyer is not returns but will buyer get a new passport & ID. Singapore & HK was very good at attracting this kind of buyers until the rules changed recently. You don't see this kind of rush in malaysia, thailand or dubai or doha, where lots of properties are available at more attractive prices. Buying a property there may only grant you a longer stay visa, not PR or a passport.

Anyway, I am joining you on Saizen, to see how long-term it will be for a recovery (and I want more regular dividends).

Happy holidays to all.

Keep up the GOOD blogging AK


AK71 said...

Hi SnOOpy168,

The following from Yahoo!News, 20 Dec 10:

More foreigners became active in the Singapore property market in November, buying almost one in three new private homes in the country. Nearly 30 percent of the total number of new private homes were snapped up by foreigners and permanent residents (PRs) in November, up 8 percent from the 22 percent recorded in October, according to analysis released by DMG & Partners Research. The growth was attributed to Chinese buyers, who are becoming more active in the Singapore property market. "They really started coming in during the fourth quarter of 2007. Previously their numbers were single digit, but now we have seen their group hitting sometimes up to 20 percent," said Brandon Lee, property research analyst at DMG & Partners, who spoke to The Straits Times. He added that Indonesians and Malaysians are also continuing to form the bulk of foreign property buyers, with Indonesians making up 25 percent of the group and Malaysians comprising between 25 percent and 30 percent.

I think the Chinese would still be buying properties outside their home country as their wallets bulge with money. They will still look for better returns even in Singapore. However, for rental yields, Japan wins hands down. ;)

Happy holidays and thanks for the encouragement. :)

la papillion said...

Hi AK,

Nothing to do with Japan properties :)

Just want to wish your blog a happy anniversary and may it have many many more years to come :)


AK71 said...

Hi LP,

Wow, you remember. I was just about to put up a blog post on this. :)

Thank you so much and I look forward to more interaction with you in future. :)

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