LivCity Nihonbashi Hamacho is a modern new-build development in the heart of the Japanese capital’s central Chuo neighbourhood. Standing very favourably against local comparables on both quality and pricing, LivCity is an excellent entry point for investors interested in this rising market. LivCity Nihonbashi Hamacho Essentials - 28 modern apartments in a central ward - Excellent transport connections to commercial and retail hubs - Sizes from 272 – 274 sq ft - Freehold title - Completed in March 2015 - Up to 70% LTV financing available* - Gross yields of up to 4.2% - Average price of JPY102,600 per sq ft - Starting from JPY27,500,000 * Subject to status, please contact us for details Japan’s economic revival is starting to gather pace, and Tokyo now presents excellent prospects for real estate investors. Olympics-related infrastructure investment, an improving economic outlook and a notable undersupply of housing are driving interest and now growth, with property prices in Tokyo’s prime wards rising an impressive 13.4% across 2014. Tokyo Investment Case Economy and Population Trends Japanese Prime Minister Shinzō Abe’s “Abenomics” stimulus programme has helped the previously slumbering economy chart a path towards steady growth in recent years. The financial markets provide the strongest evidence, with the Nikkei 225 index surging nearly 100% since June 2012. The quantitative easing programme spearheaded by the Bank of Japan has kept the Yen weak against other currencies, stoked export volume and kept interest rates under 1%. Confidence is growing – the Mizuho Research Institute forecasts the Japanese economy will grow to around JPY600 trillion by 2020. The engine of much of this growth – Tokyo – is also the world’s largest metropolitan area, with a population that reached 35.9 million in 2014. The city has grown 0.6% per annum over the last decade, and despite a declining population nationally, central Tokyo is forecast to continue attracting residents well into the 2030’s. The city is undergoing an infrastructure investment boom in anticipation of the Tokyo 2020 Olympics. The Games themselves will directly add some JPY3 trillion to the economy, but the associated regeneration and infrastructure investment will be even more beneficial, contributing up to JPY23 trillion to the metropolitan economy. Real Estate Market Japan is home to the world’s second-largest real estate investment market, and has seen a surge in interest and action from foreign investors over the last two years. Prices have been slowly improving since late 2012, and by the end of 2014 the Japan House Price Index had recorded growth of 4.9%. Money continues to flow into real estate given the inflation outlook, and prices are subsequently expected to continue this upward trend in the years ahead. Prices in Tokyo are being driven up by a significant undersupply of housing. The city’s construction pipeline remains below its ten-year average, a trend which has already fostered steady price growth of 10% across Tokyo’s main 23 wards in the year to April 2015. The situation is even more positive in Tokyo’s prime central wards, where prices grew 13.4% over the same period. While citywide rents have risen 2% year-on-year to reach their highest level since Q4 2009, the city’s five central wards now demand a 16% rental price premium on the 23-ward average. This strong performance is translating into gross yields of around 4.2% for prime location new-build apartments. Location on Google Maps: https://www.google.com.hk/maps/place/35%C2%B041'11.2%22N+139%C2%B047'24.7%22E/@35.6847677,139.7796658,15z/data=!4m2!3m1!1s0x0:0x0 Nathan Cheung Account Manager T: +852 3965 9383 M:+852 6891 8077 W: www.ipglobal-ltd.com IP Global Ltd Harcourt House , 39 Gloucester Road Suite 601-6, 6th Floor Wanchai, Hong Kong