Hongkongers are returning to the Japanese property market after a two-year absence, taking advantage of a weakening yen, which is at a 20-year low against the US dollar.
“Inquiries for Japanese homes from Hongkongers have surged by up to 40 per cent this month,” said Anvy Cheung, chief executive of Sakura Global, which specializes in Japanese property. “In the past two years, most of them just stayed on the sidelines, adopting a wait-and-see approach [due to the pandemic].”
Most of the clients are looking for homes in Japan for investment or for holiday use, with budgets ranging from HK$1.5 million (US$192,000) to HK$2 million, she added. The Japanese yen, which has fallen 12 per cent since January, may continue to weaken against the US dollar amid expectations the Bank of Japan will lag its peers such as the US Federal Reserve in normalizing monetary policy.
As the Hong Kong dollar is pegged to the US currency, the yen’s steep devaluation makes property investment more attractive to investors from the city. The easing of travel regulations, which were introduced at the start of the pandemic two years ago, has also boosted investors’ confidence.
In Hong Kong, the world’s most expensive property market, home prices have soared to levels that are beyond the reach of the general public. JLL said the number of transactions for Japanese homes conducted by the firm jumped 70 per cent year on year in the first quarter. “The hefty increase was largely due to last year’s low base for comparison,” said Mandy Wong, head of international residential at JLL in Asia-Pacific.
Due to the weakness of yen, she said some of her clients were now interested in buying more expensive homes in Tokyo, costing between HK$5 million and HK$20 million. “They see a weaker yen as a bonus as these luxury homes are cheaper than before,” Wong said.
