The residential property price index (residential land, detached houses and condominiums) in Osaka Prefecture in Japan peaked at 126.2 in July 2021, within the surveyed period (January 2019 to July 2021).
Let’s explore some of the investment prospects that Osaka offers, especially the ones that contribute to the residential markets.
Source: www.statista.com
Osaka is in the Heart of Japan
Due to its central location, it takes short time to connect to any part of Japan and the rest of the world (from the east to the west). Osaka is not only the gateway to Kobe, Kyoto, Nara, but it also acts as a gateway connecting Japan to Asia and the rest of the world. Kansai International Airport is the base for this.[1]
Japanese Yen is a safe haven currency
Investing in Japan means investing in its currency. Japanese Yen is the 3rd most traded currency in the world (after USD and Euro). And it is still considered a safe haven currency. [2]
Steady Population Growth
In 2020, Osaka City saw a positive net-migration, continuing the positive population growth - a trend that has persisted in Osaka since 2000.[3] Young migrants move to Osaka for higher educational and professional opportunities. This has increased the residential demand and reinforced the leasing market.
the economic powerhouse of Greater Osaka
In FY2018, Osaka City's GDP was about JPY20 trillion - equivalent to the GDP of a single nation. It has the 2nd highest concentration of large-scale companies after Tokyo. These factors attract many young professionals to work here in Osaka as well as to reside as housings are still affordable. Thus, it limits the population outflow.[3]
Upcoming World Events & large-scale DEVELOPMENTS
EXPO 2025: An upcoming world event. A golden opportunity attracting domestic and foreign investment. Estimated economic ripple effect: JPY 2 trillion.[4]
Integrated Resort (IR) with Casino: Estimated economic ripple effect: JPY 1.14 trillion/year. Approximate job creation: 93,000. Expected visitors: 20 million visitors. Expected opening: 2028 - 2029. [5]
Umekita 2nd Project: A large-scale complex development with offices, hotels, core functions, commercial facilities, an urban park and housing. Project is located in front of Osaka Station. Opening in summer 2024.[6]
Infrastructure Upgrade
Here are some large-scale infrastructure projects in Osaka: [7]
2019 - Osaka East Line, North Section
2023 - Umekita Station
2031 - Naniwasuji Line
2037 - Maglev High-speed Railway Central Shinkansen Osaka Extension
2046 - Hokuriku Shinkansen Osaka Extention
Foreign-friendly Property Investment
As an investor, finding the best location is one of the most important ways to earn the most capital appreciation and highest rental yields. Together with its affordability, Osaka properties have the potential as your next property investment.
As for foreign investors, Japan is also foreign-friendly in property investment. There’s no restriction on foreign ownership and no extra tax. Foreign investors pay the same tax as the locals.