The rise of Osaka as an investment hotspot for Singapore

With over US$3bn worth of real estate acquisitions, Singapore was the leading foreign investor in Japan’s property market in 2023. Investors continue to ride on that positive market sentiment this year by adding more Japanese properties to their portfolio. Given the growth in the tourism sector, owing to the weaker yen and easing pandemic restrictions, enthusiasm among investors looking to diversify and capitalise on the economic boom in the land of the rising sun has increased significantly.

Why is Osaka on the investment radar?

Along with being the second-largest city in Japan after Tokyo, Osaka is also gaining popularity for being relatively affordable compared to the capital, with more diversification opportunities for investors.

The upcoming World Expo in 2025, which is expecting a 30 million visitor footfall across six months, is another positive sign for the tourism and leisure sector in the city. Amidst this growing investor interest, Japan’s government approved the country’s first-ever casino and integrated resorts (IR) project in Osaka last year.

Located in Osaka Bay, on the northern end of the artificial island of Yumeshima, this mammoth project will cost nearly US$13.5 billion, with projections to produce more than UD$4 billion in revenue at the start of the next decade. Developed majorly by a JV consisting of Japan’s Orix Corporation and American hospitality company MGM Resorts International, construction of the facilities within the IR is all set to begin by Spring 2025.

Inspired by Singapore’s Success

Similar to Singapore’s Marina Bay Sands and Resorts World Sentosa, which contribute significantly to the country’s economic growth, the new IR at Osaka is expected to boost the Japanese economy by creating a capacity and infrastructure to host 20 million visitors annually. The plan includes amenities such as hotels, villas, casinos, shopping malls and ferry terminals that will woo local and overseas tourists.

With over $1bn worth of investments in Japan’s hospitality sector last year, Singapore investors are seizing the opportunities presented by Japan’s expanding tourism sector and hedging their portfolios against local risks and increased taxation. The increased Japanese investment by the GIC (Singapore’s Sovereign Wealth Fund), including its acquisition of the famous Kitahama Nexu building for US$180 million in Osaka, has fuelled the confidence of many individual investors.

Favourable currency exchange and more

From hovering around ¥70 to S$1 a decade ago, the Japanese currency has further devalued by more than 50% and is now near the ¥110 mark. The strengthening of the SGD against its Japanese counterpart is favourable for investors from the Lion City looking to optimise their returns by diversifying into lucrative foreign markets. At home, rising prices in the domestic property market and cooling measures are not as appealing to investors as they have outpaced average income growth, resulting in a moderated demand. This has further propelled investors to look outside for better property deals.

Introducing The Peak Tsutenkaku Elite

An iconic structure in the port city of Osaka since the 1950s, The Tsutenkaku is a landmark structure that rises over 100 metres, and it was also Asia’s tallest building once upon a time. The Peak Tsutenkaku Elite is a brand-new development inspired by the tower’s glorious past standing tall right at its doorstep. This mixed-use development by FM Investment (FMI) offers investors stylish residences in the heart of Osaka. In addition to modern residential units, the development will feature a single commercial unit, offering a dynamic living experience within a culturally vibrant city. Investors looking for freehold units have an excellent opportunity to acquire stunning detached houses in the affluent neighbourhood of The Peak Presidence Hills.

Residents at this development will benefit from living within walking distance of Ebisucho Station on the Midosuji Line and Dobutsuen-Mae Station near the Tennoji Zoo. Popular shopping and entertainment districts such as Namba, Shinsaibashi and Umeda are also conveniently close. For international travellers, Kansai International Airport is just over half an hour away via the nearby Shin-Imamiya Station.

Join us for the exclusive Osaka Property Exhibition

With Japan’s first gaming IR set to welcome tourists by 2030, property demand in Osaka will increase at an unprecedented level as the project will also create around 88,000 jobs. Investing early in this city can provide long-term capital gains and help generate steady rental income. With completion estimated in Q1 2025, we have plenty of exciting investment prospects lined up for you at our upcoming Osaka Property Exhibition across the third weekend of April. If you are interested in being a part of the Osaka growth story, join our exclusive exhibition and seminar by registering now or get in touch with our team for more details.