Investment Opportunity

Japan’s investment opportunity comes from:

  1. Japan's good economic situation

    • The Japanese economy has risen moderately since the implementation of the monetary easing policy in 2012. The economic momentum has been steadily increasing every year.
    • Under the impetus of Abe (Abenomics) government, the unemployment rate continues to decline;
    • With the continuous expansion of corporate investment, Japan is expected to have strong growth in 2019;
    • Thanks to accelerated domestic productivity growth and improved micro-level corporate performance, Japan's return on equity (ROE) is expected to increase to 12% in 2025;
    • In order to maintain economic growth momentum and to achieve the inflation target of 2%, the Bank of Japan will maintain the ultra-loose monetary policy;
    • Japan Government announced China and Japan jointly establish a third-party market cooperation mechanism indirectly participate in “One belt and One Road”
    • The Sino-Japanese currency swap agreement is restart after suspended for five years. The restart will beneficial to reduce the currency risk and transaction costs of the two countries;
    • China and Japan signed the AEO (Authorized Economic Operator) mutual recognition effectively reducing both countries on the trade costs of ports, insurance, logistics and other enterprises;
    • Japan and the European Union signed the Economic Partnership Agreement (EPA) to form a world's largest free trade zone with a population of 600 million, accounting for about one-third of the global economy. The EU has lifted nearly 99% of the tariffs on Japanese goods. According to Japanese government estimates, the agreement will boost Japan’s GDP by nearly 1% and create about 290,000 jobs.
    • Japan revised and signed the 11-nation Trans-Pacific Partnership Agreement. "(TPP11). The Japanese government estimates that after the agreement enters into force, it can boost its GDP to about 8 trillion yen per year, helping to create 460,000 jobs. 2) Japan’s tourism industry is outstanding.
  2. Japan’s tourism industry is outstanding

    • The Japanese tourism industry has developed rapidly in recent years. The number of inbound tourists visit Japan has increased by more than 30% annually;
    • According to the announcement of Ministry of Land, Infrastructure, Transport and Tourism, the number of foreign tourists visiting Japan has exceeded 30 million in 2018 and reached a record high; the Japanese government said it will go all out to attract more foreign tourists and plans to use 20 billion yen of international tourist tax to improve tourism facilities in 2019;
    • In 2017, the number of Mainland Chinese tourists visit Japan reached nearly 7.5 million year-on-year. It grew by 15.4%. On the other hand, mainland Chinese tourists accounted for the total consumption of 543.2 billion yen, from the above mentioned figures the number of China's visitor and their total consumption are both ranked in the first place if compared to various countries 3) International major events (Olympics, Expo) will bring opportunities for Japanese real estate investment
  3. International major events (Olympics, Expo) will bring opportunities for Japanese real estate investment

    • The 2020 Japan Olympic Games is expected to have 40 million overseas visitors, becoming the core element of the Japanese government's goal of achieving 2020 nominal gross domestic product (GDP) of 600 trillion yen. To ensure that the target is achieved, the Japanese government has set inbound tourists target for 2020. The specific indicators include the number of inbound tourists, the total spending of inbound tourists, the cumulative number of nights in each region and the number of reentry tourists, etc.
    • In view of the optimistic of Japanese real estate, cross-border funds continue to put into Japan. In 2017, foreign investment in Japanese real estate accounting for more than 30% of Japan's overall investment, a record high of nearly a decade.
    • Japan is currently led by the government for large-scale construction, such as the Central Shinkansen, which has invested 9.3 trillion yen.

Investment Strategy:

Mainly renovate or rebuild old houses into hostels or hotels. These refurbished or rebuilt hostels or hotels have a separate title deed. Investors can participate in the early development of the project through the following three ways. Investors may hold the property for rent or future sale, or during the development period, sell the property rights of the hostels or hotels or the entire building to the individual or institutional investor.

  1. Investors use the subscription fund in their own name or in the name of the company. Funds raised by the fund are mainly used for the renovation or reconstruction of old Japanese houses into hostels or hotels. Investors can participate in the preliminary development of the project through fund and these hostels or hotels have a separate title deed. During the development period, the fund can sell the independent property rights of the hostels/hotels or the property of the entire building to an individual or institutional investor. The project has a short development cycle and generally can sell the entire project within 4-8 months. In this way, investors' funds can be quickly invested in the second project. According to this operation model, it is generally possible to do 2 to 3 projects in the investment period of two years to increase investment income.
  2. Investors can use in name of individual or companies to buy and hold the property that we well selected.
  3. By purchasing the company's preferred stock in the name of an individual or company, we help to select quality property projects and provide professional management. We sell properties at the right time to bring good profits to our shareholders.

Japan’s investment opportunity comes from:

1)Japan's good economic situation

    • The Japanese economy has risen moderately since the implementation of the monetary easing policy in 2012. The economic momentum has been steadily increasing every year.
    • Under the impetus of Abe (Abenomics) government, the unemployment rate continues to decline;
    • With the continuous expansion of corporate investment, Japan is expected to have strong growth in 2019;
    • Thanks to accelerated domestic productivity growth and improved micro-level corporate performance, Japan's return on equity (ROE) is expected to increase to 12% in 2025;
    • In order to maintain economic growth momentum and to achieve the inflation target of 2%, the Bank of Japan will maintain the ultra-loose monetary policy;
    • Japan Government announced China and Japan jointly establish a third-party market cooperation mechanism indirectly participate in “One belt and One Road”
    • The Sino-Japanese currency swap agreement is restart after suspended for five years. The restart will beneficial to reduce the currency risk and transaction costs of the two countries;
    • China and Japan signed the AEO (Authorized Economic Operator) mutual recognition effectively reducing both countries on the trade costs of ports, insurance, logistics and other enterprises;
    • Japan and the European Union signed the Economic Partnership Agreement (EPA) to form a world's largest free trade zone with a population of 600 million, accounting for about one-third of the global economy. The EU has lifted nearly 99% of the tariffs on Japanese goods. According to Japanese government estimates, the agreement will boost Japan’s GDP by nearly 1% and create about 290,000 jobs.
    • Japan revised and signed the 11-nation Trans-Pacific Partnership Agreement. "(TPP11). The Japanese government estimates that after the agreement enters into force, it can boost its GDP to about 8 trillion yen per year, helping to create 460,000 jobs. 2) Japan’s tourism industry is outstanding.

2) Japan’s tourism industry is outstanding

  • The Japanese tourism industry has developed rapidly in recent years. The number of inbound tourists visit Japan has increased by more than 30% annually;
  • According to the announcement of Ministry of Land, Infrastructure, Transport and Tourism, the number of foreign tourists visiting Japan has exceeded 30 million in 2018 and reached a record high; the Japanese government said it will go all out to attract more foreign tourists and plans to use 20 billion yen of international tourist tax to improve tourism facilities in 2019;
  • In 2017, the number of Mainland Chinese tourists visit Japan reached nearly 7.5 million year-on-year. It grew by 15.4%. On the other hand, mainland Chinese tourists accounted for the total consumption of 543.2 billion yen, from the abovementioned figures the number of China's visitor and their total consumption are both ranked in the first place if compared to various countries 3) International major events (Olympics, Expo) will bring opportunities for Japanese real estate investment

3)International major events (Olympics, Expo) will bring opportunities for Japanese real estate investment

  • The 2020 Japan Olympic Games is expected to have 40 million overseas visitors, becoming the core element of the Japanese government's goal of achieving 2020 nominal gross domestic product (GDP) of 600 trillion yen. To ensure that the target is achieved, the Japanese government has set inbound tourists target for 2020. The specific indicators include the number of inbound tourists, the total spending of inbound tourists, the cumulative number of nights in each region and the number of reentry tourists, etc.
  • In view of the optimistic of Japanese real estate, cross-border funds continue to put into Japan. In 2017, foreign investment in Japanese real estate accounting for more than 30% of Japan's overall investment, a record high of nearly a decade.
  • Japan is currently led by the government for large-scale construction, such as the Central Shinkansen, which has invested 9.3 trillion yen.

Investment Strategy:

Mainly renovate or rebuild old houses into hostels or hotels. These refurbished or rebuilt hostels or hotels have a separate title deed. Investors can participate in the early development of the project through the following three ways. Investors may hold the property for rent or future sale, or during the development period, sell the property rights of the hostels or hotels or the entire building to the individual or institutional investor.

  1. Investors use the subscription fund in their own name or in the name of the company. Funds raised by the fund are mainly used for the renovation or reconstruction of old Japanese houses into hostels or hotels. Investors can participate in the preliminary development of the project through fund and these hostels or hotels have a separate title deed. During the development period, the fund can sell the independent property rights of the hostels/hotels or the property of the entire building to an individual or institutional investor. The project has a short development cycle and generally can sell the entire project within 4-8 months. In this way, investors' funds can be quickly invested in the second project. According to this operation model, it is generally possible to do 2 to 3 projects in the investment period of two years to increase investment income.
  2. Investors can use in name of individual or companies to buy and hold the property that we well selected.
  3. By purchasing the company's preferred stock in the name of an individual or company, we help to select quality property projects and provide professional management. We sell properties at the right time to bring good profits to our shareholders.