We are currently witnessing a “perfect storm” of factors driving a surge of Singaporean interest in Japanese real estate. It’s not just one single thing, but a powerful combination of financial, policy, and emotional drivers that have aligned to create a truly unique opportunity.
As an expert who has guided many investors through this market, I’ve answered some of the most pressing questions in this comprehensive guide. Here’s what you need to know.
1. The “Perfect Storm”: Why Are Singaporeans Buying in Japan Now?
This is the most common question I get. The answer is that multiple, powerful drivers are all happening at once.
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Massive Currency Discount: The Yen is at a multi-decade low against the Singapore Dollar. This gives Singaporean buyers a huge “discount” on high-quality assets. A ¥100M property that cost S$1.25M a decade ago might still only cost S$1.2M today, even if the property price in Yen has risen significantly.
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No Additional Buyer’s Stamp Duty (ABSD): This is a huge financial calculation. For Singaporeans who already own property at home, buying a second or third property in Japan is far more capital-efficient. You avoid the high ABSD, freeing up significant capital.
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Favourable Ownership Laws: Japan is very friendly to foreign buyers. You can buy freehold property with the same ownership rights as a local Japanese citizen.
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A Fundamental Economic Shift: This is a key point many miss. Japan is finally breaking out of its deflationary “Lost Decades.” With inflation and rising rents, local Japanese are now incentivized to buy property rather than save. This is creating real, sustainable domestic demand. This isn’t just a “foreigner-led” bubble.
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Familiarity and Likeability: Singaporeans simply love Japan—the culture, the unparalleled safety, the food, the travel. This high level of comfort and familiarity makes it a much easier and more emotionally satisfying investment decision compared to a less-familiar country.
2. Who are Buying? The 3 Main Profiles of Singaporean Investors
It’s a diverse mix, not a single group. In my experience, we see three main profiles:
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The “Pure Investor” (The Largest Group): These buyers are focused on capital appreciation (especially in Tokyo’s 5 central wards) and/or rental yields (which are often higher in other major cities like Osaka). They see the combination of the weak Yen and Japan’s economic turnaround as a rare, strategic entry point.
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The “Retiree / Lifestyle” Buyer: This is a distinct and growing profile. These are typically wealthier individuals who have their lives and assets in Singapore “mostly settled.” For them, a property in Japan is a lifestyle asset (a place to spend a few months a year) and a legacy play (a freehold asset to pass down). It also acts as a strategic hedge, diversifying their wealth in a different currency and a stable, G7 nation.
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The “Parents and Planners”: These are parents buying apartments for their children who are, or will be, attending tertiary studies at top Japanese universities like the University of Tokyo or Waseda. It saves on rent, provides a secure home for their child, and acts as a long-term asset.
While some middle-income buyers are participating, the bulk of the activity comes from those who are already financially established and are looking for diversification.
3. How to Buy Safely: Spotting the “Real Deal” vs. a Scam
You can buy through roadshows, seminars, and specialist agencies in Singapore. The absolute key is due diligence. Here are the “green flags” to look for and the “red flags” to run from.
✅ “Green Flags” (How to Spot the Real Deal)
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Local Demand: Ask this question: “What percentage of your buyers are local Japanese?” If the answer is high (e.g., 90%, like for our flagship product LIDEAS by Tokyu Livable), you’re buying into a real, functioning market.
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Reputable Partners: The agency must have a strong, formal partnership with a major, established Japanese real estate firm (like Tokyu Livable). This provides accountability and trust that they won’t “simply disappear,” which has happened so often in the overseas property space.
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Full Transparency: They should be upfront about all costs, including taxes, management fees, and potential repair costs.
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Clear After-Sales Service: They must have a clear process for property management, rental, and legal support.
⛔ “Red Flags” (How to Spot a Scam)
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“Foreigner-Only” Projects: If a development is marketed only to foreigners, this is a massive red flag. It often means locals don’t see value in it.
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Unrealistic Guarantees: Be very wary of “Guaranteed 10% rental yield for 10 years!” These are almost always unsustainable and just built into an inflated purchase price. There are many cases of these guarantees being stopped halfway, leaving investors stranded.
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High-Pressure Tactics: Being forced to “sign today” or lose a “special discount.” A good investment will still be a good investment next week.
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Vagueness: If they are unclear about the location, title (is it truely freehold?), or the full list of fees, walk away.
4. Your Pre-Purchase Checklist: 6 Things to Consider
When someone is planning to buy, I give them this checklist.
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Ask “Why”: What is your primary goal? Capital gains? Rental income? A holiday home? Your goal determines what and where you buy.
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Know the “Numbers” (Taxes): You must understand the full tax picture: acquisition tax, fixed asset tax (annual), income tax (on rental), and capital gains tax (on exit).
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Understand Currency Risk: The weak Yen is an entry advantage, but it can also affect your rental income when converted back to SGD if the Yen continues to depreciate. While analysts predict a rebound, you must understand your risk.
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Financing: Don’t be misled by the 0.5% headline Japan interest rate. That is off-limits to non-residents. For foreigners, it is much harder to get a loan, and interest rates are much higher (typically 3-4%).
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Property Management: Who will manage the property, find tenants, and handle repairs? This is why condos (or our LIDEAS product) are much easier for overseas investors than landed homes, as they have building management.
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Language & Insurance: Ensure you have a reliable, bilingual partner for contracts and management. For Japan, earthquake and fire insurance are also crucial considerations.
5. An Expert’s View on “Akiyas” (Empty Houses)
“Akiya” just means “empty house.” There’s a recent trend of foreigners buying these cheap rural homes as potential Airbnb assets, but this is extremely high-risk and not a passive investment.
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The “Buy”: The purchase price is deceptive. You might buy a house for S$30,000, but it will almost certainly require **S$80,000 – S$150,000+** in renovations (plumbing, electrical, structural) to be livable.
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The Risks:
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Location: They are cheap because they are in depopulating rural areas with little to no local rental demand or resale market. Your only exit is finding another foreigner.
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Renovation Trap: It’s a “renovation black hole.” Costs can spiral, and finding reliable contractors in the countryside is very difficult.
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Regulation: Your entire business model might depend on Airbnb, which can be restricted by local governments at any time.
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In short: An akiya is a full-time, high-risk project, not an investment.
6. The Final Strategy: “Core” (Singapore) vs. “Satellite” (Japan)
I’m often asked, “Is it better to buy overseas or just stay in Singapore?”
This is not an “either/or” question. It’s about strategy.
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Singapore is your “Core”: Singapore property is a stable, high-growth, safe-haven asset. For most people, this should be the foundation of their wealth.
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Overseas is your “Satellite”: An overseas property, like in Japan (especially a top-tier city like Tokyo), is not a replacement for your Singapore base. It is a complement.
The goal is diversification. With a Japanese property, you are diversifying your wealth into a different geography, a different currency (Yen), a different asset class (freehold), and a different market—one that is just beginning an inflationary growth cycle.
For the savvy individual who has their Singapore assets settled, buying in Japan right now is a powerful strategic move to build on that foundation.
Ask Jim