City banks and investors around Japan focusing on Tokyo
The focus on Tokyo
Many city banks and domestic investors across Japan are focusing on real estate investment into Tokyo since a few years back. One reason for this is the fact that Japan has started their “Negative Interest Rate” in the beginning of 2016. This move alone has setup many domestic investors to flee their savings in banks and stick them in investment options, one being real estate. With the sudden increase in demand many banks have offered investors loans for property, but of course majority of investment properties that have a value where a bank can lend a loan, would be located in major cities. With domestic investors and companies purchasing property in major cities around Japan such as, Fukuoka, Nagoya, Osaka, Kyoto, Kobe, Yokohama, and Sapporo, the main city of focus is Tokyo. I will not get into why Tokyo is “the focus” but below are some related articles.
Back to the original subject, many banks will only lend loans to their own city area, but furthermore Tokyo as an investment option. This drives domestic investors who do not reside in Tokyo to buy property in Tokyo for investment but also counter measures for inheritance tax, income tax, and/or to leave some asset for their families in a growth potential city as insurance. In the future, perhaps other city banks from different areas will start lending loans for other major growing capital cities in Japan.