Weak yen, Seoul’s regulations drive up demand for Japanese properties.By Yi Whan-woo

More wealthy Koreans are on a real estate buying spree in Japan, as these properties are more affordable and lucrative compared to those in Korea, real estate industry officials said Tuesday.

The persistently weak yen has been attracting Korean buyers, who either take out cash from Korea or apply for loans from Japanese banks, they said. Korean investors are expected to go shopping for real estate in Japan for a while, as the exchange value of 100 yen is still lower than the yearslong norm of 1,000 won despite the Japanese central bank’s recent shift to a rate hike policy.

In Korea, a housing bubble
that has shown no sign of letting up, along with strict regulations, is seemingly driving buyers away from the domestic market to the Japanese market.

“Buyers possibly do not want to miss an opportunity of owning properties in Japan for affordability and profitability reasons,” Kwon Dae-jung, a real estate professor at Sogang University, said.

The professor was referring to data concerning Korean nationals’ purchase of properties overseas, which was compiled by the Ministry of Economy and Finance and submitted to the National Assembly.

Data showed that Korean nationals remitted a total of $39.2 million to Japan in property payments there in 2024, which nearly tripled from $13.1 million in 2023.

In particular, the remittance to Japan last year accounted for 9.4 percent of the entire amount sent abroad for real estate purchases the same year. The figure was the highest in the past seven years, according to the finance ministry.

Kwon said the actual amount spent by Korean buyers in Japan in 2024 is about twice larger than the aforementioned $39.2 million, considering they generally finance about 50 percent of the cash they need through loans from Japanese banks.

Another real estate expert said on condition of anonymity that demand for Japanese properties is likely to go on as buyers can find more profitable assets for more affordable prices than the ones in Seoul.

“For instance, buying an apartment in a neighborhood where public transportation, shopping malls and hospitals are easily accessible requires more than 1 billion won ($689,000) in Seoul,” he said.

“But it is surprisingly not the case in Japan,” he said, noting multiple Korean individuals have bought such units for less than 1 billion won in Tokyo and other
metropolitan areas.

Kim Woong, the head of Hana Bank’s Estate Investment Center, also said that, for wealthy Koreans, the value of the yen is still low against the won and as such, “weak Japanese currency will sustain real estate shopping in Japan.”

Source: Korea Times

UBS Group AG is predicting China’s property sector will recover sooner than previously anticipated, led by a revival in top-tier cities.
John Lam, head of China and

Hong Kong property research at the Swiss bank, now expects home prices to “turn stable” at the beginning of next year, compared with an earlier estimation for the middle of 2026, according to a media briefing Wednesday.

Lam is known for shocking markets by downgrading China Evergrande Group at the start of 2021, 11 months before the nation’s most indebted developer defaulted during the housing meltdown. He also went out on a limb last year by turning bullish on the sector when most of his peers were predicting more gloom.

After four years of correction, the inventory turnover time in tier-one cities has returned to an average of 14 months, the same level as in 2015, according to Lam. That could prompt developers to expand land reserves and build better-quality apartments to sell at a higher price, he said.

Still, Lam expects the Chinese property market will grow more polarised. He favours regional developers in top-tier cities, saying those with premium land banks there will have more flexibility to plan projects than builders that operate nationwide.

Source: Bloomberg