Property Market Overview

Japan's surging economy was slammed into reverse in the 1980s and since then has been struggling to fully recover. The country's property market has followed the same pattern and up until 2007 prices were consistently unstable. However, with the property market of every country in its vicinity powering ahead, Japan finally started to show signs that it was a worthwhile location for real estate invesetment two years ago. Sadly, that was when the first signs began to emerge suggesting that the credit crunch and the US sub-prime mortgage crisis might stall the global economy. Real estate prices have again went into reverse as weak demand for Japan's exports due the global economic slowdown worsened by a number of high-profile bankruptcies have pushed the nation's economy and the housing market into the doldrums.

Japan's urban land price index for the six biggest cities dropped by 6 per cent year-on-year to the end of the first half of 2008 - a particularly noteworthy development given that the same period in 2007 saw a 8.4% price rise during the same period. The economy officially went into recession in Q3 2008 after Japanese GDP shrunk for two consecutive quarters. With the economy expected to remain in recession and credit becoming increasingly difficult to come by, Japan's real estate industry could well continue to struggle for the next two to three years. However, Japan's property was realistically valued before the credit crunch which means massive declines, which are expected to be seen in particular in developing countries which had been experiencing property bubbles over the last five years, will be far less pronounced.

Major property investment regions
Tokyo, Osaka.

Upcoming markets
Okinawa.

TOKYO

Tokyo started life as a fishing village named Edo in the 1400s. Today, the Greater Tokyo Area is the world's most populous metropolitan area with 35 million people. The Tokyo Metropolis is one of the 47 prefectures of Japan located on the eastern side of the main island Honsh?. It is divided into twenty-three wards, each of which is governed as a city. The central prefecture, which covers the area formally known as the city of Tokyo, lies in the eastern part of the prefecture and has a total over 8 million people.
Read the latest analysis of the Tokyo property market.

OSAKA

Angeles City is in Pampanga province in the Central Luzon region of the Philippines. The city is rich in history and heritage with a wealth of historically and architecturally significant buildings scattered around, but Angeles City's booming sex tourism trade is the major attraction for a large portion of the overseas visitors it receives. But for good or bad, the city's nightlife is driving tourism destination and sees thousands of visitors opt to invest in real estate with a view to relocating there long-term.
Read the latest analysis of the Osaka property market.

OKINAWA

Cebu Island is a long narrow island stretching 225 km from north to south, surrounded by 167 neighboring smaller islands, that includes Mactan Island, Bantayan, Malapascua, Olango and the Camotes Islands. Its capital is Cebu City, the oldest city in the country, which forms part of the Cebu Metropolitan Area together with six neighboring cities Carcar City, Danao City, Lapu-Lapu City, Mandaue City, Naga City, Bogo, and Talisay City.
Read the latest analysis of the Okinawa property market.

Essential information

Location
Japan a country made up of some 3,000 Pacific islands in East Asia. Its largest islands are Honshu, Hokkaido, Kyushu and Shikoku, which collectively account for 97 per cent of the country's land mass. Japan lies to the east of the Sea of Japan, beyond China and Korea. Russia is to the north and Taiwan lies further south.

Area
Total: 377,835 sq km
Land: 374,744 sq km
Water: 3,091 sq km

Population
127,288,416 (July 2008 est.)

Language
Japanese is the official and spoken language of Japan. Some individuals, generally those whose work necessitates it, are proficient in English.

Religion
Most Japanese people observe a type of Shinto Buddhism, accounting for 84 per cent. The other 16 per cent follow either none or a minority religion, such as Christianity, at 0.7 per cent.

Currency/Money
The international symbol for the Japanese currency is ? . It is pronounced 'Yen'. Its Japanese symbol is ? pronounced 'En'.

Climate
The climate of Japan is predominantly temperate, but varies greatly from north to south. The main rainy season begins in early May in Okinawa, and the stationary rain front responsible for this gradually works its way north until it dissipates in northern Japan before reaching the Hokkaid? region in late July. The hottest temperature ever measured in Japan was 40.9 C, in August 2007, although many regions see temperatures drop far below OC in winter.

International dialling code
81

Capital
Tokyo

Electricity
The voltage in Japan is 100 Volt, which is different from North America (110V), Central Europe (220V) and most other regions of the world. Japanese electrical plugs have two, non-polarized pins, as shown above. They fit into North American outlets.

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History

Japan's modern history began at the start of the 17th Century when the Tokugawa shogunate introduced an isolationist policy which lasted for more than 200 years, during which time the country achieved a political stability and cohesion absent in many other Asian nations. A treaty signed with the US in 1854 led the country to open its ports, a move which triggered a feverish period of industrialisation. During the late 19th and early 20th centuries Japan began to utilise its well-equipped and trained military to spread its influence. It defeated both China and Russia and then occupied Korea, modern day Taiwan and southern Sakhalin Island. In the run up to World War II Imperial Japan further extended its reaches by occupying Manchuria and then launching a full-scale invasion of China. Buoyed by its unprecedented successes, Japan attacked US forces at Pearl Harbor in 1941 before conquering much of East and Southeast Asia.

Japan's march was brought to an abrupt end when two of its main cities were struck by American nuclear weapons. The country's surrender was followed by a rapid period of recovery as Japan regained its position as one of the world's key economic powers. While the emperor retains his throne as a symbol of national unity, elected politicians - with heavy input from bureaucrats and business executives - wield legislative power. Although the economy experienced a major slowdown in the 1990s, Japan still remains an Asian and indeed global economic power.

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Government

Japan is a constitutional monarchy although the Emperor's power is limited. Power is held chiefly by the Prime Minister of Japan and members of the parliament or Diet. The Diet is a bicameral parliament consisting of a House of Representatives with 480 seats elected by popular vote each four years and a House of Councillors with 242 seats and elected members who serve six-year terms. There is universal suffrage for all Japanese people over 20 years of age. The conservative Liberal Democratic Party (LDP) has held power almost continually since 1955, other than for a brief period when a coalition government formed from opposition parties held a majority in 1993.

Economy

Japan has the world's second largest economy after the US with some US$4.5 trillion in nominal GDP. It comes in terms of purchasing power parity with banking, insurance, real estate, retailing, transportation, telecommunications and construction among its key industries. From the 1960s to the 1980s Japan enjoyed significant economic growth. On average it increased by 10 per cent in 60s, 5 per cent in the 70s and 4 per cent in the 80s. Growth fell away in the 1990s due to a number of factors including the Japanese asset price bubble and later the Asian financial crisis. After a period of relative decline, the Japanese economy was showing signs of recovery by 2005 and the following two years witnessed advancing GDP growth. It remains to be seen how severely the global economic slowdown will impact on Japan although early indications are that it will not remain immune.

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Visas

Citizens of 62 countries and territories, including the majority of Western countries, can obtain permission to land on arrival without getting a visa ahead of time. This generally qualifies stays of 90 days, although some nationalities are permitted to stay for 180 days through this method. The Ministry of Foreign Affairs maintains an online Guide to Japanese Visas. Visas are not required for a same-day transit between international flights at the same airport, so long as you do not leave the secured area. All foreigners at or over 16-years-old are fingerprinted and photographed as part of immigration entry procedures.

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Healthcare

The Japanese are one of the most hygiene-conscious nations in the world and health hazards are rare. Tap water is drinkable as a rule and food hygiene standards are very high. There are no notable contagious diseases although the volume of human traffic on public transport means that visitors can often pick up colds.

Travel

Most international visitors will arrive at either Narita Airport (NRT) near Tokyo or Kansai Airport (KIX) near Osaka. Although all three are considerable distances from respective city centres, each of them are well served by rail networks and bus services. Other international airports include Hiroshima (HIJ), Fukuoka (FUK) and Sapporo New Chitose (CTS). Tokyo's other airport, Haneda Airport (HND) is the busiest in Asia but primarily serves domestic flights.

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