As a city that is ranked 3rd as one of the most liveable locations for East Asian Expatriates, what other potentials does Osaka has? Is it a city to invest in?… Let us take a closer look.
Asia ex-Japan (AxJ). Japan is the 3rd largest economy in the world.
Japan’s economy is separated from the rest of Asia as it is the only developed country in the whole of Asia. Although Asia ex-Japan region are generally considered emerging markets and are of interest to investors looking for high-growth investment opportunities, Japan carries a much lower risk than in the rest of Asia as Japan has a stable and developed economy.
In fact, Japan is the 3rd largest economy in the world. Its GDP crossed the $5 trillion mark in 2019 according to the World Bank, for its manufacturing and export-orientated economy.
The Size of Osaka’s Economy.
With a GDP comparable to that of Netherlands, Kansai is one of the world’s leading major metropolitan areas. Osaka, in particular, has played an integral role as Kansai’s main city in the development of Japan’s industrial economy.
At 180 billion US dollars, Osaka City's GRP accounts for approximately 3.6% of Japan's GDP and is roughly equivalent to the economic activity of New Zealand. In addition, the GRP of Osaka prefecture in total is equivalent to that of Norway.
Source: www.investosaka.jp
Japanese Yen is considered a safe haven currency.
As a safe haven, it is expected to retain or increase in value, while most assets are falling in value, during times of market turbulence. And Morgan Stanley has named the Japanese Yen as a relatively safe bet in 2020, according to CNBC. In 2021, Japanese Yen is also the 3rd most traded currency in the world after USD and Euro. Thus, investing in Japan property means investing in the appreciation of Yen, liquidity of Yen and investing in the safe haven that is always expected to go up during crisis.
Osaka is in the heart of Japan.
As it is at the centre of Japan, it is easily accessible. Osaka is also the gateway to go to Kobe, Kyoto and Nara. It can connect to any parts of Japan, and the world, in a short time. It is the centre of connectivity as it connects the East and the West.
Source: www.investosaka.jp
Osaka is more than a tourist destination.
The major industry in Osaka is manufacturing (16.6%), followed by wholesales and retail trade (16.6%). It does not rely on international tourism. Even if Covid-19 pandemic continues with travel bans, Osaka continues to do well.
Source: Prefectural Accounts, Osaka Prefecture (FY2017)
Airbnb is legalised in Osaka.
Japan is now the only place in Asia to legally operate a homestay. Guests are allowed to stay up to 365 days now. Under the relaxed rules in 2018, hosts will not have to register if they are renting out their homes at the request of local governments, according to Nikkei Asia.
Osaka is among the safest and most liveable LOCATIONS in the world.
In 2019, Osaka was ranked 3rd overall in the report of 'Urban Safety Ranking' hosted by the Economic Intelligence Unit.
From 2019 to 2021, Osaka retain its 3rd rank as the most liveable locations for East Asian expatriates, according to the global mobility expert ECA’s research.
Future Business and City Development
Osaka will host the Expo 2025. This will bring significant investment into Osaka and connect Osaka to the world. Osaka provides an ideal location for international companies seeking to invest with experienced local partners. It is home to a range of skilled manufacturers in the electronics, pharmaceutical, machinery, device, chemical, food, and construction industries.
The future development of Osaka includes train lines, hotels. With these development, there will be more investments. Property prices will appreciate as land are getting lesser. Construction cost will increase. And as population increases, the demand for short and long terms for rental will stay.
Sources: Investopedia, World Bank, Invest Osaka, CNBC, Nikkei Asia, Economic Intelligence Unit, ECA, Jetro Global Channel
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