Chinese investors cash in on Japan’s weak yen, from collectable toys to sight-unseen properties
- Some middle-class and wealthy Chinese are scooping up flats in major cities such as Tokyo, with an eye on immigrating in the future
- Attractiveness of Japanese assets sees a corresponding rise with the diminishing value of the yen, which recently hit a 20-year low against the US dollar
The Japanese yen has weakened considerably against the Chinese yuan this year and hit its weakest level against the US dollar at the end of April.
There have been many inquiries recently from Asian investors, including in Hong Kong, Singapore and mainland China, said Kin En, who runs a property agency in Tokyo.
Most of the inquiries are from Chinese investors who want to buy urban properties in Japan at the currently weak yen level, for future immigration purposes, she said.
Chinese wealthy individuals are not necessarily rushing to invest in properties in the West as they did in the past
“Most of them are concerned about China’s increasingly stringent Covid-control measures. The lockdown in Shanghai has made them anxious about the risks of losing security, personal freedom, careers and dignity overnight,” Kin said.
“Meanwhile, they think it’s good timing to invest in Japanese assets. While housing prices in Japan’s major cities have risen considerably over the past year, it’s still affordable for middle-class investors from mainland China.”
The deteriorating and nebulous relationship between China and the West has unexpectedly increased the attractiveness of Japanese assets among wealthy Chinese individuals, including among business owners and middle-class residents in the Pearl River Delta and Yangtze River Delta, China’s most developed areas.