Osaka attracts foreign investors due to future IR and a weaker yen

Singaporean investors have shown interest in Osaka’s real estate sector.

Japan.- The real estate market in Osaka, Japan, is seeing a surge in interest from Singaporean investors, drawn by a combination of factors such as a weaker yen and the potential for tourism-driven growth in the city with the upcoming development of an integrated resort.

International property agent FM Investment has reported a fivefold increase in inquiries since Japan reopened its borders in October, with Singapore accounting for about 70 per cent of 800 requests received between April and June, followed closely by Hong Kong.

Compared to Tokyo, investors find Osaka’s property prices more attractive. The demand for rental housing in Osaka from overseas buyers has increased by 3.5 times in the first half of this year compared to the same period in 2022.

Osaka’s IR project is worth JPY1.08tn (US$8.38bn) and is backed by a consortium that includes MGM Resorts International and Orix. MGM Resorts CEO Bill Hornbuckle has said that construction will commence late this year or early in 2024, with the resort to open in the first half of 2030.

This venture aims to compete with other major gaming destinations in Asia, including in Macau, South Korea and Singapore. Authorities estimate it could attract 20 million visitors annually. Japan has a long-term goal of 60 million foreign visitors per year by 2030. Osaka is also hosting the World Expo in 2025, which is expected to bolster tourism.