Singapore’s growing fascination with the Japan property market is reshaping regional real estate trends. From private buyers to major developers, many Singapore investors are channeling their capital into Japan’s booming real estate sector, driven by the weak yen, strong rental yields, and a rebound in tourism.
At FM Investment, Singaporeans now make up half of all transactions—an impressive leap from just 30% last year. The firm has already hosted over 15 sales events this year featuring boutique developments across Tokyo, Osaka, Nagoya, and Kyoto. Similarly, OrangeTee’s recent showcase in Singapore highlighted a Tokyo apartment priced under S$500,000, while Savills Singapore reported that local investors purchased half the units in an Osaka project.
Singapore Investors Accelerate Interest in Japan Property Market
Corporate players are joining the momentum. Patience Capital Group partnered with Gaw Capital to acquire Tokyu Plaza Ginza and raised 39 billion yen for a tourism-focused fund to revive ski destinations like Myoko and Madarao. Meanwhile, CapitaLand Investment expanded its footprint with self-storage facilities in Osaka and a mixed-use property in Tokyo.
The Japan property market appeals strongly to Singaporeans due to its accessibility and affordability. With few restrictions on foreign ownership and a yen that has weakened by nearly 17% against the Singapore dollar over five years, entry into the market has never been easier. Investors are particularly drawn to short-term rental properties in tourist-heavy cities, capitalizing on Japan’s record 31.65 million foreign visitors between January and September 2025.
Strong Yields and Expanding Investment Beyond Tokyo
FM Investment CEO Amous Lee estimates that rental yields reach around 5% in Osaka compared to 3% in Tokyo. This difference has encouraged experienced investors to explore emerging cities like Kyoto, Fukuoka, and Sapporo, where yields can reach 8%.
According to Stacked Homes, returns in these secondary cities outpace those in Singapore, where yields average 2-3%. However, potential buyers must also account for additional expenses such as maintenance, earthquake insurance, and renovation fees that are unique to the Japan property market.
A Global Surge in Interest Toward Japan Property Market
Beyond Singapore, investors from around the world are turning to Japan. CBRE Japan data shows that foreign buyers acquired 1.14 trillion yen (US$7.76 billion) worth of Japanese properties in the first half of 2025—the highest figure since 2005. Notable deals include Blackstone’s $2.6 billion purchase of the Tokyo Garden Terrace Kioicho complex, underscoring Japan’s status as one of the most promising investment destinations globally.
Professor Yoshihisa Matsumura’s research at Hannan University found that in Osaka alone, Chinese individuals and firms own over 2,300 “minpaku” private lodgings—many catering to tourists. Yet, Japan’s government does not publish ownership data by nationality, making the full scope of foreign investment difficult to measure.
The Future of Japan Property Market Remains Bright
Experts expect Japan’s stability and steady returns to continue attracting global capital. Urban Research Institute’s Kenichiro Yunome noted that as economic uncertainties rise elsewhere, Japan remains a safe haven with a resilient property sector.
For Singapore investors, the Japan property market offers not just affordability and diversification, but also a gateway into one of Asia’s most dynamic real estate environments—where the yen’s weakness, tourism surge, and market openness create an ideal investment storm.
