Research indicates that this is due to the good experience enjoyed by many foreigners in Japan which is spreading by word of mouth overseas and accelerating the demand for long-term residences in Fukuoka.”



As the fastest-growing major city in Japan outside the capital area, Fukuoka has been tempting workers and entrepreneurs away from the larger cities for decades through its lower prices and more relaxed lifestyle.


Fukuoka, the largest city in Kyushu Island in southern Japan, is becoming one of the top tech start-up cities in Asia.

Fukuoka is particularly attractive to investors due to its local and international transport connections. It is an economic and transportation hub on Kyushu Island.

Tax breaks, relaxed visa restrictions and convenient international travel are making Fukuoka property highly sought-after by foreign investors.


Rin Chiniku, Miyoshi Real Estate, explains:

“Rental trends in Fukuoka's real estate market remains positive.

Statistics showing that more than 60% of people living in Fukuoka are renting properties. Rental demand is consistently high and this is reflected in the increasing average rental rates.”

“We are seeing greater number of foreigners moving to Japan for education and advanced medical treatment, and they are also looking to rent or buy in the housing market. A number of these are choosing to reside permanently in Japan as well.

This segment of the market is not a new trend and we have had similar demands before. However, these is a recent boom in foreigners moving to Fukuoka not for sightseeing or short stay, but with the intention of residing on a long-term basis.

Research indicates that this is due to the good experience enjoyed by many foreigners in Japan which is spreading by word of mouth overseas and accelerating the demand for long-term residences in Fukuoka.”



As the fastest-growing major city in Japan outside the capital area, Fukuoka has been tempting workers and entrepreneurs away from the larger cities for decades through its lower prices and more relaxed lifestyle.

It's especially popular with younger generations, fueling high demand for rental units in the inner city that continues to drive up property prices.


Takahiro Yonei, Mitsubishi Jisho Residence, said:

“With the increasing population of young people comes increasing demand for family-type layouts such as 70-80 sqm layouts consisting of three or four bedrooms.

This is paralleled with higher demand for 40-60sqm units due to the rising number of single professionals moving to Fukuoka for work.”


Designated one of Japan's Special Economic Zones, Fukuoka has more to offer than just a strategic location. With residential and office rents up to 50 percent cheaper than Tokyo, the international city offers attractive prospects for overseas property investment.

Because of the tremendous social and economic activities in Fukuoka, investors can look forward to high rental yields. Fukuoka is an excellent choice to benefit the luxury of living while they invest in properties at a very low cost.


For further information contact JLL International Residential directly at +65 6220 3888 or 

13 Mar 2019

For many Singaporeans, the purpose of investing overseas is often two-fold: the potential financial gains are important but so are lifestyle factors.

Here’s where Japan comes into its own.

With its relative proximity to Singapore (compared to Europe, the US, or other key markets), high quality of life, and great diversity of climate, culture, and cuisine, Japan’s got a lot going for it.

That’s partly why it’s one of the world’s quickest growing tourist attractions, with arrivals up 19 percent in 2017 compared with the previous year.

In 2016, the Straits Times reported that Singaporeans accounted for the second biggest increase in tourist numbers in Japan (15 percent) from the previous year.

Yes - Singaporeans love Japan. And when we add in the sound economic factors for investing in Japan, it becomes even more attractive for many Singaporeans.


Here are seven key reasons why you may want to consider investing in Japanese property sooner rather than later…


1. A world focus on Tokyo in 2020



With the upcoming Olympic Games to be held in Tokyo in 2020, the world’s gaze is fixing upon the capital of Japan. It’s already home to more Fortune 500 companies than any other city in the world, except Beijing.

This is having a major effect on infrastructure, as well as demand for property and construction projects.

Between January 2013 and August 2017, the average price of a new condominium in central Tokyo has grown by more than 35 percent.

And quite apart from the investment opportunities, Tokyo is considered a unique, vibrant, pleasant, and safe place to live.


2. A strong and stable economy



Ranked third in the world for GDP and last year registering its longest stretch of growth since 2005, investing in Japan provides a foothold in a strong and stable economy.

To put the size of the economy into perspective, the Kanto region, of which Greater Tokyo is part, has a GDP greater than that of the entire UK; and the Hokkaido/Tohoku region to the north has a GDP approaching that of Turkey’s.

The country’s property market is also stable and sophisticated. In the past five years, it has certainly benefited from the Japanese Prime Minister “Abenomics” economic policy, with residential property prices around the country on the rise.


3. Affordability and finance-ability of properties


Photo: Tokyo, Japan by Jason Ortego, Unsplash


Compared with property prices in Singapore and other major cities around the world, including London, New York, Hong Kong, and Shanghai, Tokyo still offers good affordability.

For instance, a mid-market apartment in the centre of Tokyo would cost around $15,000 per sq. metre; in Hong Kong, a similar property would be close to three times as expensive.

The recently weakening yen has only served to make properties even more affordable. This, coupled with the availability of mortgages from Singaporean banks like UOB and OCBC, make the financial side of purchasing in Japan more viable than in the past.


4. Excellent rental opportunities


The rental yield on apartments in Tokyo averages out at 3-4 per cent and, especially in the central wards of Tokyo, it’s easy to find long-term, professional tenants.

The average monthly rent of a condominium in Tokyo’s 23 wards was recently estimated to be up 5.1% from last year - representing the ninth month in a row with a year-on-year increase.

These are encouraging figures. Provided you are assisted by a recommended property management company (which we can help you with), you should have few fears of investing in the Japanese market.


5. Endless vacation possibilities


Photo: Park Hyatt Niseko, Hanazono


If you’re looking at buying in Japan to enjoy the variety of cultural and natural beauty as a regular tourist, Japan offers amazing vacation possibilities.

Singaporeans can visit Japan for up to 90 days without a visa and are doing so in ever-increasing numbers. And they’re not just travelling to Tokyo - they’re exploring the further-flung areas of the country too.

Buying a property in Tokyo or elsewhere in Japan can be your reason to return again and again -  and you still won’t run out of things to do!


6. It’s a great place to retire


Thinking of retiring outside of Singapore after your working days are done?

Setting up in Japan is a great option for many of the same reasons that make it such a great tourist destination.

To add to the factors already described, there are excellent healthcare facilities available all over the country; Japan ranks first among OECD countries for number of hospital beds per 1000 people. It also boasts the second longest life expectancy on the planet, after South Korea.

It’s generally considered a very peaceful place to live too. In fact, it was ranked a close second to Singapore in Asia in the Global Peace Index 2018.

Additionally, Japan performs well in the OECD Better Life Index , especially for personal security, income, wealth, education, and environment quality.


7. Foreigner-friendly property-owning laws


Singaporeans (like all foreign nationals) can own property in Japan without restriction.

No citizenship or even residency is necessary and no restrictions on ownership rights to land exist, unlike in some Asian countries, like Thailand and the Philippines.

And, unlike some countries like Canada and Australia, there are no extra fee or taxes applied simply because you’re a foreign buyer.


Never invest anywhere without trusted professional advice…

Investing in Japan is a bright picture indeed. But making any major financial decision without first doing your homework and consulting professional advice is asking for trouble.

Are there challenges to investing in Japan ? Yes, the language, culture, property purchasing laws and financing regulations are all foreign to outsiders and will create difficulties if you attempt to navigate them alone.

But with the right guiding hand to walk you through the purchase process, Japan ultimately makes it very simple for you to buy.

Japan is one of our main international markets and we have built an enviable reputation in the local market, working closely with top-tier developers and helping clients make the right investment decisions there.


Arrange a free consultation to take the first steps to owning your very own property in Japan.

For further information contact JLL International Residential directly at +65 6220 3888 or

To view residential properties in Japan, click here



21 Feb 2019

Photo: Ginza, Chuo, Japan by Benjamin Hung, Unsplash


If you’re thinking about investing in property in Japan, what better location could there be than the heart of Tokyo?

The city is booming. And the apartments at IMPREST Tokyo Hatchobori Le Cinq are right in the centre of this boom.

But there’s a limited opportunity to ride the wave of investor optimism sweeping over the city.

These brand new apartments are due to be ready by August 2019 and we expect them to get snapped up quickly…






Why do these apartments tick the boxes?

IMPREST Tokyo Hatchobori Le Cinq, in the core central area of Tokyo, could be what some Singaporean investors have been looking for:

• Top location - you couldn’t be more central in one of the world’s most thriving cities

• High profile - a 12-storey residential building with 99 apartments in total

• Elegant & modern - everything in this residential building is high-quality

• Choice of floor plans - from 1LDK to 3LDK apartments available

• Easy to rent - attractive for long-term professional tenants in central Tokyo and a guaranteed rent scheme available

• IMPREST brand quality - an established brand of high-spec apartments in key locations around Tokyo

As you can see, these apartments have got a lot for going for them. But let’s look at the location a little closer, as this is one of the key attractions.


Why Tokyo?

• The approaching 2020 Olympic Games has boosted demand and infrastructure

• Between 2012 and 2016, capitalisation rates in central Tokyo grew by 40 percent

• Rental growth was a healthy seven percent in the same period

• In the last 12 months, average prices of existing condominium units rose by 4.6 percent in metropolitan Tokyo

Japan-wide, residential property prices have been trending higher since 2013 and tourist numbers have hit record numbers.

Investor outlook in the world’s third largest economy is rosy indeed - and set to continue.


Why Chuo-ku?

The IMPREST Tokyo Hatchobori Le Cinq apartments are located in Chuo-ku.

That’s strategically nestled at the nexus between the famous areas of Ginza, Marunouchi, Nihombashi and Tsukiji. It’s difficult to be more central…


And here’s why Chuo-ku ticks the location, location, location box:

 • It’s one of Tokyo’s three central wards - known as the city’s downtown centre

 • The area has the highest population growth in the whole of Japan

 • Just two minutes’ walk to Hatchobori Station and 14 minutes to Tokyo station (Marunouchi Central Business District)

 • Over 10 railways stations within 1km of the development, connecting with 23 lines

 • Approximately 100 of Tokyo’s 500 Michelin restaurants are in the vicinity

 • It’s Tokyo’s financial hub - attractive for wealthy, long-term professional tenants to rent

 • Will benefit from the Tokyo Station Regeneration Project by JR East and real estate developers over the next decade


Chuo-ku is set to become even higher profile in the 10 years.

The redevelopment project will modernize the surrounding area and deliver brand new commercial and retail buildings, transport facilities, the Bulgari Hotel development, and more public and lifestyle amenities.  It will also be home to the tallest office tower in Tokyo.



Find out more this weekend…

How do you take the first steps to registering interest in the IMPREST Tokyo Hatchobori Le Cinq apartments in central Tokyo?

Join us at the St. Regis Hotel in Singapore this weekend.

We’re experienced in walking potential investors through the process of buying in Japan and can answer all your questions about the apartments available in this new development.


DATES: 29 - 30 September 2018 (Sat & Sun)

TIME: 11am - 7pm

>>> Register


See you there!

10 Oct 2018

Buying Process

Buying process of resale property is very much similar to that of a new-built property.

The payment schedule is very straight forward, with a 5 to 10% down payment upon exchange of contract and the balance payment will be upon delivery of property. The whole transaction in general will take around 2 to 3 months.



For the documentation process, the buyer needs to prepare an Affidavit/Declaration before the exchange of contract, as a proof of identity and for registration of ownership purposes.


The estimated costs upon purchase amount to 5 to 8% of property price, inclusive of agency fee and related taxation.


Selling Process

To list the property on the resale market, the owner needs to exchange a brokerage agreement with an appointed agent after deciding the desired selling price.

Once a potential buyer has made an offer and after the buying conditions and schedule are confirmed, the contract will then be exchanged with a 5-10% down payment. To save on remittance costs, all payments from the buyer are usually kept by agent first.

After receiving all the payments and deducting the necessary costs, the agent will remit the net income to the seller.



The owner shall prepare Affidavit/Declaration before the exchange of contract to prove identity. Also, the title deed of the property needs to be submitted before the delivery of the property.

If you have bought a property through JLL, the title deed would have been delivered to you after the handover. If you have problems locating the title deed, please contact your respective salesperson and we will be able to assist.


Estimated cost for selling property can amount to 4 to 5% and exclusive of Capital Gain Tax as it can vary case by case. Capital Gain tax is imposed on the net profit that the seller makes from the transaction. The taxation rate is either 30.63% on properties held for less than 5 years, or 15.315% on properties held over 5 years. Please note, that the holding period starts from January 1 of the new year. Eg. If the handover of the property is September 2020, 15.315% rate will apply from January 1, 2026.

For more details you may contact JLL International Residential at +65 9671 9583 or


19 Nov 2020

In this video, Meg Tang from JLL Japan will explain the differences between Joint Tenancy and Tenancy In Common

16 Jul 2020

One of the fastest-growing cities of Western Japan, Fukuoka is home to Japan’s youngest demographic. With rising prices of real estate and high demand for rentals, its local property market is attracting investors from various parts of the world.


The capital city of Fukuoka Prefecture, it sits on the northern shore of the Japanese island of Kyushu as the business hub of Asia.

Globally, Fukuoka is the second home to Fortune 500 companies, after Beijing.

The city draws students and young entrepreneurs from worldwide because of its good educational facilities. uniRank, published the 2019 University Ranking of 30 recognised higher-education institutions in Fukuoka. The city closely follows Tokyo, Kyoto and Osaka in numbers of higher educational institutions.

Source: Fukuoka Asian Urban Research Center (URC)


Do the agile demographics of the city make it dynamic? The growing culture of start-ups and sharing economy are the answer.

According to the Information & Strategy Office of the Fukuoka Asian Urban Research Centre’s Annual publication, “Fukuoka Growth”, Fukuoka occupies only a small share of the area and population nationwide, but larger shares in many of the other indicators.

No wonder, international companies like Airbnb and Beijing Mobike Technology Co. Ltd. used Fukuoka as their test bed when entering Japan years ago.

Today, Fukuoka trails only Tokyo and Osaka in having the highest number of Airbnbs in the city. Also, the shared-cycle concept has become the most popular mode of transport in the city – which is also due to the city’s cycle-friendly environment.

Another survey in the Fukuoka Growth speaks about the city’s lifestyle, as about 96% of residents admitted they like Fukuoka, 95% found it highly liveable and 93% wanted to continue staying there.

Source: The Information & Strategy Office – Fukuoka Urban Research Centre


In 2012, the government declared this dynamic city as the “start-up city” and then designated it as a “National Strategic Zone for Global Startups and Job Creations” in 2014. Tapping the potential of start-up growth, it also introduced a business subsidy. In 2015, the start-up rate in Fukuoka was more than 7%, which was 1% more than that of the national average.

What followed was the offer of “start-up visa” encouraging foreign nationals and “start-up tax reduction” targeting innovative businesses in the medical and advanced IT sector. All these were the first-ever trials in Japan.


The major growth driver of the city is its upwardly mobile youth.

“Fukuoka’s population is increasing, especially youngsters who rent as well as purchase condominiums. At the same time, minimum wages are also rising on an average by 3% over the last three years as compared to about 1% from 2009 to 2012”, says Kentaro Sato, Director of International Residential at JLL.


In addition, Japanese law permits students to earn while they study which increases their purchasing power. According to JLL, the general trend in Fukuoka is that its residents utilise about 80% of their disposable income, which is the seventh highest in Japan.

Due to this demand and the purchasing power, rental yields on investment are high.


Source: Night view of Fukuoka by Suhyeon Choi , Unsplash


Fukuoka’s dynamics also attract foreign nationals. The share of foreign nationals entering Fukuoka city is prominently high at 11%. According to Fukuoka Growth, every fiftieth resident in the city of 1,600,000, is a foreigner.

Many of these expatriates come to Fukuoka for education and then decide to continue staying there due to city’s active lifestyle and opportunities. The increase in foreigners staying in Fukuoka city over the long term contributes to the increase of the population as well as gross city production.

Many foreign buyers are also investing in properties here. The city facilitates real estate investment further with its relaxed rules. You don’t need citizenship or a residency permit. Furthermore, the city offers easy visa restrictions, convenient local and international transport connections, and investor-friendly regulations.


The International Monetary Fund has also projected the nation to be ranked number three in the world for the highest GDP in 2019-2020.

Today, the city’s growth has left behind the whole country in various indicators. The Japan-based Nomura Research Institute has ranked Fukuoka the number one city with the highest growth potential among 100 domestic cities. 


Some indicators (2010 – 2016)




Foreign residents


11.70 %     (MOJ Immigration Bureau)



8.70%         (MOJ Ministry of Trade)



3.90 %        (MOJ Ministry of Trade)

Foreign entrees


145.90%    (MOJ Immigration Control Statistics)



Fukuoka market shows positive sentiments

Considering its strong economic status, investing in the Fukuoka is attractive.

To cap it all, the Fukuoka rental market shows positive trends.

According to JLL research, over 60% of the population lives in rented properties. Constantly rising demand has increased rental rates as well as property prices. This is also because the residential and office rents are about 50% cheaper than Tokyo hence high in demand.

According to the letting and management consultants, Miyoshi Real Estate Co., Ltd., the vacancy rate for the units that they manage in Fukuoka is approximately 3%.

This has been a phenomenal time for new lease agreements. Living proof of this is the eight new buildings under construction in Fukuoka all of which are almost fully occupied.

However, currently, the centre for all attention in Fukuoka is the “Tenjin Big Bang” project.

Located in the heart of the city, the project’s objective is the city’s revitalisation. Backed by authorities, the project offers various benefits and a relaxation of regulations. The project is expected to play a key role in the development of the surrounding areas.

The cherry on the cake is the recent government’s Inns and Hotels Act for vacation rentals. This law allows people to open their homes for business opportunities.

The Parkhouse Fukuoka Towers

The other attraction is the development of The Parkhouse Fukuoka Towers East and West – one of the largest complexes in Kyushu occupying an area of 54,000 square metres.

The East Tower houses 292 residential units and is situated next door to an expansive shopping mall, Mark Is Fukuoka Momochi, having 163 shops, restaurants, and a movie theatre.


Photo: Mark IS Fukuoka Momochi, CGI rendition


Photos: The ParkHouse Fukuoka Towers , CGI rendition

Invest in Japan's Fastest Growing City - Fukuoka

Find out more at our launch!


To know more in detail about investment opportunities in Fukuoka, you can attend our event on September 7 and 8 at Hilton Singapore. We will also have a seminar on how the young Mayor’s urban and economic development plans are making Fukuoka one of the fastest growing cities in Japan.


RSVP here

For any further information, contact JLL International Residential directly at +65 9671 9583/ +65 6220 3888 or write to


11 Feb 2020

A gentle downhill run under sparkling blue skies, while the kids get one last snowboarding adventure in before lunch?

Maybe you prefer a little après-ski, kicking back with friends and enjoying a cocktail in one of the cosy bars or ski lodges after a long day out on the slopes?

Or is a round of golf or a day out cycling, fishing or horse-riding in the Hokkaido countryside in the warmer months more your style?

Most Singaporeans familiar with Japan probably know of the ski resort of Niseko but you may not be so familiar with all the year-round attractions it has to offer; or with the growing opportunities to invest and capitalise on the thriving tourist market there.


A booming year-round resort town with a perfect snow profile

The town of Niseko sits in the shadow of the iconic Mount Yotei, sometimes called the “Mount Fuji of Hokkaido” on account of its almost perfect conical shape.

It is a two-hour drive south-west of Sapporo, the main city in Hokkaido, Japan’s north island.

Its “fixed” population is rather small - just a few thousand - but tourist numbers have swelled the annual numbers by hundreds of thousands (and growing) for many years now.

On the radars of skiers and snowboarders the world over, Niseko is well-known for high volumes of its fine powder snow (a whopping average of 14 metres of the stuff per season!) and world-class facilities.

It’s been featured in the world’s Top 10 ski resorts many times this millennium and is well established as a first-class, global ski resort. It’s certainly one of the leaders in the Asia Pacific region when it comes to winter sports.

In fact, it’s sometimes labelled the “Aspen of Asia”; or the “St. Moritz of Asia” if we’re going even more upmarket.


Anne-Marie Sage, regional director of International Residential Asia Pacific at Jones Lang LaSalle, says:

“With facilities on par with the world's most famous ski resorts, rivalling Whistler, Aspen and the Swiss Alps, Niseko has become the playground for well-heeled Asian travellers. It's popular for many reasons, including its proximity and identical time zone.”


It may surprise you, however, that in 2017 the summer season accounted for nearly half (48 percent) of the total yearly visitors.

The “green season” as it’s known, from May to October is now challenging the “white season” (November to April) for occupation rates.

That’s music to the ears of Niseko property investors.


Why is Niseko property in such high demand?

Japan is the world’s third largest economy and is gearing up to host the Rugby World Cup later this year and the Olympics in 2020. It has recently made its policies more favourable to foreign investment and tourism.

In fact, it welcomed a record number of foreign tourists in 2018 (31 million), many of these repeat visitors. Japan hopes to hit 40 million arrivals by the end of 2020 and 60 million by 2030!

Compare that with 13.4 million visitors in 2014.

Niseko has benefited from this and from Hokkaido’s growing reputation as a holiday destination with a difference.

Hokkaido’s total international visitor numbers in 2017 topped six million for the first time; Niseko attracted around 10 percent of these visitors.

The shinkansen (bullet train) extension to Hakodate in 2016 means that Sapporo can be accessed from Tokyo in four hours now.

Plans to extend the line again to Niseko and Sapporo by 2031 is more good news for the area and, if Sapporo wins the 2026 Winter Olympics bid, there’s a chance this date could be brought forward.

A new highway is also being constructed, connecting Sapporo to the Niseko area. This will cut driving time from two hours to one hour 15 minutes.

Other infrastructure projects are testament to an increasing spotlight falling on the Sapporo-Niseko area.

Direct flights from almost 20 different destinations have also helped the cause.

Eight cities in mainland China now fly direct to Hokkaido and the recent announcement of direct flights from Sydney and Helsinki to Sapporo point to the growing worldwide profile of the area.



The region of course benefits greatly from its proximity to the population hubs of Asia; in particular China, South Korea, Taiwan, Hong Kong, Thailand, and Singapore, which account for the highest number of foreign tourists.

And with these growing tourist numbers, so the demand for accommodation has increased.

Since 2011, the number of accumulated accommodation guests in Niseko has grown by a healthy compound annual growth rate (CAGR) of 23.5 percent, making it one of the fastest-growing tourist destination in Japan.

This has provided a huge boost to the hotel industry, with luxury hotel brands like Park Hyatt, Hilton, and Ritz Carlton already established or involved in developments there, along with many other local and international chains.

Led by hospitality, the residential real estate market has also received a significant boost, especially in the $500,000 - $1.2 million bracket.

And the trend is set to increase, with the Japanese tourism authorities encouraging international tourists to venture far beyond the traditional routes.

This all makes Niseko a very attractive proposition for Singaporeans looking for investment opportunities.

Properties offering affordable, stylish alpine homes like Snow Dog Village, which opened its doors in 2017, provide an opportunity to claim a part of one of the most attractive year-round resorts in East Asia.

Such properties can become a holiday “home from home” for many years and also provide handsome rental returns…


Photo: Snow Dog Village, Niseko


Projected returns on Niseko properties

As well as its growing reputation and convenience of access, Niseko has benefited from the freehold ownership policy of the Japanese government (unlike many countries in Asia), as well as a lower Japanese Yen and high capital gains. 

And, with occupation rates for Niseko properties so encouraging, investors can expect very health returns.

For instance, the projected returns on one bed and studios for the aforementioned Snow Dog Village in 2018/2019 are 3.1 to 4.2 percent per annum. For two bedroom apartments, the returns are projected to be 5.3 percent.




Since 2011, prices in Niseko have risen 10 percent per year and yields have consistently been in the three percent to six percent bracket.

The average selling price of condominiums grew 12.5 percent in 2017 and the built-up price for condos in Niseko has soared 25 percent in a single year. 

In Kutchan, a small town near Niseko, commercial land rose 36 percent and residential land prices rose by 33 percent.


Time to grab a piece of this jewel?

There’s never been a better time to invest in Japan - and Niseko is the jewel in the crown of the north island of Hokkaido.

As the established ski resort matures into a year-round attraction and a gateway to much of what Hokkaido offers summer travellers too, the upward trends in tourism and property are showing signs of gathering pace.

We should see the Japanese government’s investment in the extension of the shinkansen as a particularly positive sign that this is an expanding area.

Clearly, there’s a window of opportunity here for canny Singaporean investors to put their name on a piece of this jewel.

However, bear in mind that investing in Japan is still investing in a foreign country. This creates some unique challenges that most Singaporean investors will need professional advice on before committing.


For more details about this investment opportunity, you may attend JLL's seminar in Singapore or contact JLL International Residential directly at +65 6220 3888 /



Property Seminar: The Evolution of a Ski Market. Niseko, Hokkaido Residential Market Update

27th -28th April 2019 (Saturday & Sunday), 4.30 pm daily



23 Apr 2019

For investors looking to find new homes in other countries or grow their money in the long term, investing in international properties is an excellent bet. As local real estate markets display sluggish performance and modest opportunities at best, looking beyond your borders can present bountiful prospects for capital appreciation. Popular investment regions include the UK, Japan, Germany and USA. Here’s an in-depth look at why investing in overseas properties is a wise move.


1. Derive sizeable passive income

Renting out your property is a sure way to generate a passive income. Having these proceeds can mean different things for different people. Depending on the amount and regularity of this income, it can help finance a mortgage, be used for future investments, or even be a key source of earnings for someone to live on. The relatively stable nature of real estate (as opposed to stock markets, for example) makes it a safe asset to have even in the face of property price swings and market volatility.


2. Diversify your portfolio with a global edge

Real estate is a valuable addition to your current investment portfolio. Just as diversifying your portfolio can provide security and greater potential for returns in different sectors, so does investing in property globally, which lets you enjoy the economy of more than one country by generating cash flow in different currencies. This means that you are not restricted by the economy in which you’re based, as the future of your investments is not wholly determined by your country’s economic performance.

Additional benefits include (a) ensuring that you pay close attention to markets across different regions which can also boost opportunities for your other investments, and (b) expanding your real estate know-how as you mingle with international networks and discover the limitless potential you have for investing.


3. Leverage robust growth rates internationally

Investment benefits abound overseas, and these same advantages may not always be available in the country you now live in. Economies that are opening to free market policies as well as emerging markets across Asia have higher growth rates, which are impacted by factors such as corporate revenue, regeneration, migration and fertility rates.

Examples of international property investment benefits include:

-  Protection against inflation, as real estate is a tangible asset with an inherent value separate from paper currency and its constant fluctuations

-   Multiple uses to generate further income by renting out your property, converting it from a permanent residence to cater to the tourism industry, or using it for other commercial purposes

-   Appreciation in value leading to a significant rise in income, as rapid development and regeneration around major property sites worldwide enhance the value of your property


4. High rental yield and worthwhile returns

Expect to score high rent income from properties in regions with rapid growth in terms of economy and human capital, where public transport connectivity brings different parts of community together and where cosmopolitan culture thrives.

Consider also the stability of your returns by studying historical trends and up-to-date forecasts. The UK, for example, offers a 17.6% average return on investment (for rental) from 2017 to 2021. As one of the leading real estate markets worldwide, London has a lot to offer for potential investors.

Japan has seen a 7% rental growth between 2012 and 2016, and will likely see a greater increase in coming years as Tokyo gets ready for the 2020 Olympic Games.

Long-term investors might also want to set their sights on Germany, where the 4.2% - 12.3% increase in rental reflects the flourishing world-class financial hub in Berlin, which is also positioned for growth with its currently emerging tech scene. Demand exceeds supply in most of Germany’s major cities, with vacancy rates below 1.5%.


5. Retirement home or holiday getaway

Besides the abundant perks of exchange rate benefits, owning hard assets to insulate your investments from market crashes, generating a side income, and building a diverse portfolio for optimal growth, having several properties overseas also gives you the freedom to make it your retirement or holiday home.

As markets are always unpredictable and it’s hard to tell what things will be like in several decades, you could either relocate to a chosen property for lifestyle reasons during retirement or even sell it in the future and make a huge profit. Either way, having international real estate is a sure win for the long term.

While investing in property around the world may not always be easy as it requires a thorough understanding of different markets, loan procedures, local regulations and various costs around acquisition and letting, it is worth your while to dedicate some time and learn about this in greater depth to expand your investment potential. Reputable consultants are always available to provide advice and insights on financing and legal-related questions.


6. Double your investment returns by investing in both education and real estate

One of the greatest gifts you can bestow on your children is to invest in their education. With the UK being home to some of the finest universities in the world, it is no surprise that many Singaporeans jump at the chance to study in the prestigious Oxbridge or London colleges. By investing in a residential property at the same time, you can divert rental costs into a property for your children to live in for the duration of the studies, and to reap rental yields after their graduation. What better way to invest than to provide both an education and a home for them at the same time.


For further information please contact JLL International Residential directly at +65 6220 3888 or 

13 Feb 2019