This Singaporean Has Been Building Property In Japan Since 2015 — Here’s What He Says Investors Should Know

Meanwhile, landed properties are suitable for foreign buyers looking for homes for their own-use, or as a retirement home. FMI Japan’s portfolio includes The Peak Residence Hills, a collection of 19 landed two-storey homes in Toyonaka, Osaka. The freehold plots range from 1,435 sq ft to 2,184 sq ft, with houses that span 1,076 sq ft to 1,130 sq ft. Homes in thisproject start from $996,000.

Japan’s 3 lows are attracting investors

There are also other advantages that foreign buyers in Japan enjoy, namely, low mortgage rates, no ownership restrictions, and the absence of taxes like additional buyer stamp duties and seller’s stamp duty.

The relatively low interest rate environment means that the opportunity to access mortgages offered by Japanese banks is an appealing benefit that could also serve as an effective currency hedge, says Lee.

In a Dec 2025 market report by Savills on the prospects of the Japanese property market in 2026, the international consultancy noted that its in-house cap rates for mid-market residential assets was 3.4% in 2025.

The Savills report noted that average rents in Tokyo climbed 8.2% y-o-y in 3Q2025, while overall occupancy rates were 96%. At an institutional level, most asset managers are increasingly willing to prioritise rental growth over near-term full occupancy, particularly for higher-quality residential assets.

In 3Q2025, residential assets in Tokyo’s core five wards (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) command rental premiums of voer 20% relative to the 23 wards that make up the Tokyo Metropolitan Prefecture.

Rising construction prices and land costs, coupled with a shrinking future supply pipeline, have resulted in record-high condo prices across Tokyo’s central wards. This has increased affordability pressures and is expected to keep more households in the rental market, according to the Savills report.

Language and new regulations can put off new investors

Nevertheless, entering the Japanese property market can be daunting for first-time investors. Lee says that many Japanese agents usually hesitate to work with foreign buyers due to language barriers. In addition, building trust in Japan requires time and referrals from trusted sources, he says.

While contracts must legally be signed in Japanese, it’s helpful for foreign buyers when they can work with an end-to-end company like FMI to streamline the process with translations and support from licensed notaries.

“FMI Japan bridges this gap, providing direct access to properties often unavailable via traditional channels. Our established industry standing grants clients exclusive opportunities, including off-market private land deals,” he says.

It has an office in Singapore handling the paperwork, which works with a team in Japan that offers guidance during bank visits and appointments. Lee says that they collaborate with tax advisors and local banks to streamline financing options for international investors by offering tailored mortgage solutions.

FMI Japan is also a licensed Japanese property developer, and its services cover the full property lifecycle, including land acquisition, design and construction, property management and rentals.

One of its recent en bloc developments is The Peak Shinsaibashi Skye, a freehold apartment in Chuo Ward, Osaka. The 39-unit development features two retail shops and is close to Shinsaibashi Station and Nagahoribashi Station. The project is expected to be completed bythe end of 2027.

“Clear laws and regulations are making it easier for foreign buyers to invest in new developments in Osaka, and we expect a strong growth trajectory for residential properties in the city,” says Lee.

He adds that while Tokyo continues to record soaring property prices over the last decade, Osaka stands out for its more affordable real estate and higher rental yields, an ideal market for redevelopment and turning flats into B&Bs.

The city’s appeal looks set to grow when Japan’s first integrated development, the MGM Osaka, is completed in 20230. The under-construction resort and casino is being built on Yumeshima Island in Osaka. The development is expected to attract substantial economic and tourism benefits.

Japan remains a top investment destination of choice

Looking ahead, Japan is expected to remain the top destination for real estate investment capital among global investors. For Singaporean-based investors, Japanese real estate are high-quality asset that is relatively affordable in terms of capital and foreign exchange rates.

Many investment opportunities in Japan are budget-friendly compared to Singapore’s private residential market, says Lee. “For Singaporeans, property investments within Singapore can be challenging due to its high costs. However, Japanese properties present a more accessible entry point, a highly promising market, and provide an appealing option within a well-regulated environment that guarantees stability and reliable returns.

He adds that mortgage options for foreign buyers are particularly appealing, and there aren’t many countries that can generate returns like Japan. It is also a stable destination for investors looking to diversify their investment real estate portfolio.