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In a short period of one and a half months, a large number of strong foreign consortia “huddled” into the Japanese real estate market.
This is no longer a hint that the focus of foreign investment will shift to Japan in the future, but simply a “naked” indication that its attention to the Japanese market is increasing.
Due to novel coronavirus’s troubles, Japan’s benchmark land price has changed.
On September 29th, Japan’s Ministry of Land and Transport released the benchmark land price in Japan as of July 1 this year. According to statistics, the average rate of change in full-use buildings across Japan fell by 0.6% compared with the same period last year, the first decline since 2017.
Among them, the benchmark land price for commercial land fell for the first time in five years with a change rate of-0.3%, while the benchmark land price for residential land also fell by 0.7%.
At the beginning of this year, the benchmark land price officially announced by Japan was still on the rise.
The sharp decline in the number of visitors to Japan due to the spread of novel coronavirus, coupled with travel restrictions imposed by the Japanese government in the first half of this year, led to a sharp drop in sales of shops, hotels and accommodation, thus affecting the entire Japanese real estate market.
In addition, during the spread of COVID-19, various countries issued corresponding entry and exit restrictions, making investors who originally wanted to allocate overseas assets this year have a lot of uncertainty about the Japanese market.
In the latest data, the announced land prices of residential land in the three metropolitan areas of Tokyo, Osaka and Nagoya also declined, with the average value of the three metropolitan areas falling by 0.3%. Tokyo and Osaka fell for the first time in seven years, and Nagoya fell for the first time in eight years.
However, the announced land price of commercial land in the three major metropolitan areas still maintained a rise of 0.7%.
However, the Japanese government began to “rescue the market” from the moment COVID-19 spread.
From cash subsidies and long-term low-interest loans to the “Go To Travel Plan” and the “Go To Eat Plan”, all the measures introduced by Japan in the first half of the year have made great efforts to revive the Japanese market, and in terms of results, they have been very effective.
In terms of the number of local corporate bankruptcies, the number of corporate bankruptcies in Japan in the first half of 2020 (April-September) was 3858, a decrease of 9.4 per cent compared with the same period last year.
Even at the height of the epidemic in the first half of this year, the number of bankruptcies fell to its lowest level in the past 30 years, and signs of recovery in the Japanese economy are clear.
In early September, as Buffett was celebrating his 90th birthday, we also learned that Berkshire’s reinsurance company, the National compensation Corporation (National Indemnity), had bought stakes in five Japanese trading houses: Itochu (20.5%), Marubeni (5.06%), Mitsubishi (40.5%), Mitsubishi (5.03%) and Sumitomo (40.5%).
