Japan’s real estate market is attracting investors from Hong Kong and Singapore, said Hiroki Tsujimura, chief investment officer of Nikko Asset Management Co. Ltd.
In a Hong Kong press briefing on Monday, Tsujimura said real estate prices in Japan have not changed much in the past years. But as prices increase after decades of deflation, and given the negative interest rate in Japan, the market has become more attractive to investors.
He also said the government’s monetary easing program and its pledge to achieve a 2 percent inflation rate in two years will encourage more citizens to spend rather than save, thus driving domestic consumption and economic growth.
About US$8.5 trillion or more than half of the country’s personal financial assets are held in cash, and up to 65 percent of that cash is held by elderly people. This is good for the economy, as most of the elderly know how to spend wisely as they have experienced inflation in their lifetime, Tsujimura said.
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