Toshihiko Yamamoto is the Founder and CEO of Yamamoto Property Advisory which is a boutique real estate advisory company based in Nibancho Chiyoda-ku, Tokyo, Japan. Toshiko explains that at Yamamoto Property Advisory they apply a very hands-on approach to real estate investment consultation catering to individual's needs and wants. Apart from the conventional investment such as buying homes, condos and residential buildings in big cities, Yamamoto also provide unique advice on typically unconventional investments such as private lodging (Airbnb), akiya (abandoned house), kominka (traditional old Japanese folk house) and Japan's green cards.
Yamamoto Property Advisory is an officially licensed broker able to work as a realtor to arrange and coordinate real estate transactions.
REthink Tokyo sat down with Toshihiko to gather some insights into his property journey and experiences in the Japan real estate market.
Why did you first start working in the property industry?
I bought my first condo unit in Tokyo when I was 27 years old,
Since then I have bought and sold several real estates including the investment of residential buildings in Tokyo and Chiba.
I still own one residential building with seven stories in Chiba city which is about one hour from central Tokyo
What led you to create Yamamoto Property Advisory?
Based on my personal experience as a real estate investor and bitter mistakes over 25 years, I have been improving my consultation services to my fellow Japanese investors for several years.
Over the last few years, I have been asked to give private consultation to foreign investors who live in Japan as well so have I officially launched my new venture 'Yamamoto Property Advisory' in 2017 to provide real estate consulting services to foreign investors as well as Japanese investors.
What are some of the defining moments in the Tokyo real estate/expat history?
I personally lost a lot of money in the real estate when the real estate bubble in Japan burst in the early 1990s.
I got ripped off by a rogue real estate company when I was young.
Since then I officially launched my company, I have seen many harmful deals which foreign investors contracted (Many of them were exploited by bad agents) - My mission is to create a more clean industry and prevent such harmful deals in the industry.
How do you best help a buyer or tenant?
Our consultation is very hands-on and we don't just offer a cookie-cutter approach. Since we are a small company, we are very flexible and able to cater specifically to each client's needs.
Related reading: Residential lease property management in Tokyo
How do you best help a vendor selling/leasing their property?
Japan's real estate industry is still very old-fashioned in many ways and clear transparency is lacking. Having a good network of trustworthy vendors and agents is crucial and we leverage our relationships and market insights to best help our vendor clients.
Where are the key emerging markets/sectors in Tokyo that foreign investors should be looking in up?
Well, depending on the budget you have but in the light of extremely fast growing inbound tourists, the hotel sector including private lodging and short-term rentals is the most exciting right now.
What would you like to see changed in the industry in the next five years?
The transparency improving and wiping out rogue agents.
Related reading: Renting property in Japan
What are some key opportunities in the marketplace at the moment?
Japan dramatically relaxed the immigration laws last year (and our government keeps doing so) which is great for the market. Foreign nationals with appropriate background could obtain a Japanese green card within one year subject to applications. One can use real estate investment to leverage their green card application process. Buying an abandoned/empty house in Tokyo and turning them into Airbnb or even into a properly licensed hotel. The finance available by the banks is also a key for success.
What advice would you give to people looking to invest in Tokyo property?
Please select a good agent and be careful to seek the best-suited financing arrangement available to you. The principle of investment theory is the same in Japan, if you are not a veteran investor, please do your homework by reading a couple of books before you make a serious decision.
Finance available through the banks is also a key for success and their stance for lending changes very often. You need be very mindful of the current and shifting stance of the banks.
Related reading: Buying property in Japan
What are your thoughts on Tokyo's affordable real estate sector?
Overall, The Tokyo market, especially central wards such as Chuo, Minato, Chiyoda is becoming more expensive but you still can find good quality and affordable houses and condos in the surrounding wards.
Flipping akiya (empty house) into a rental property is interesting and these properties are very affordable (5-6 mil yen).
What wards/sectors have the strongest interest and where are the buyers based?
In fact, recently we have been receiving many inquiries about the old houses in Kyoto from foreign countries including Germany, France, Australia, Hong Kong and USA. Obviously, we also receive inquiries from foreign nationals who are residing in Japan and their interest really varies.
Where do you see the Tokyo residential market in five years?
The greater Tokyo area is the largest city area by far in the world with about 38 million in population and it is still growing.
The large institutions in the industry are still mildly bullish about the Tokyo market and according to the recent UBS real estate bubble index, the price in Tokyo is slightly overvalued but valuations are still far away from the inflated environment of the late 1980s.
Although the population of Japan as a whole is decreasing, Tokyo's population is estimated to increase for several years and due to the relaxation of the immigration laws, the number of foreign residents could grow drastically in coming five years while the government is already forecasting at least 40,000 people are needed to address the shortage in the workforce.
Unless the market sees the global real estate crush, I believe the Tokyo market will grow in a healthy manner due to the following reasons: The climate in Tokyo is moderate all through the year, Tokyo is the safest among the big cities in the world, has a well developed public transport system, the food here is amazing and very affordable. You can experience the very unique sub-culture such as anime and manga as well as the thousand-year traditional rituals still practiced today, and yet, if you travel for two hours by train, you can enjoy the beautiful beaches and the breathtaking mountains.
For more information about the Japan property market email Toshihiko Yamamoto, Founder and CEO of Yamamoto Property Advisory via the contact details below.
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