Patience Realty is aiming to bring institutional level service to Japan’s residential real estate sector.
According to Ken Nakazawa, managing director of Patience Realty, what this entails is a more limited approach to buyers than what most other firms promote. With Patience Capital, the ideal buyer has the ability to hold onto a property for 5 to 10 years despite what the overall macro market might bring.
”Regardless if the market is up when you purchase, even if prices drop, we are confident they will come back in central Tokyo and other certain select areas of the country." said Nakazawa.
To highlight the point, Nakazawa mentioned looking at Minato Ward, specifically in addresses where Mori Building has created gentrification projects like Roppongi Hills and Toranomon Hills.
Source: https://tochidai.info/tokyo/minato/
“Looking at 2008, the post-GFC bottom for Roppongi addresses was still higher than the pre-GFC bottom after the opening of Roppongi Hills.” said Nakazawa.
He further explained that you can see something similar with the impact of Toranomon Hills on the Toranomon addresses and that he expects to see something similar happen with the Azabudai addresses moving forward.
Why? 2023 is when Azabudai Hills will open to the public.
As an example of the kinds of properties Patience Realty can provide, they currently have an off market, multi-family property for sale immediately adjacent to the Azabudai Hills complex.
Multi-family investment adjacent to Azabudai Hills offered by Patience Realty. Click for more information.
“The price is aggressive perhaps in today’s market but looking forward, the kind of price appreciation possible can outweigh any current negativity towards the ask.” explained Nakazawa.
Not only in central Tokyo but also in Niseko does Patience Realty see strong areas of growth.
Originally a locale where the domestic population was leaving, the natural geographic conditions of the land combined with a winter jet-stream that brings in cold air from Siberia and gives the Niseko area on average 90 days straight of fresh, lift-access powder.
“If you were to ski on the same quality powder elsewhere in the world, you would need a helicopter, not a lift.” said Nakazawa.
This fresh powder first attracted the attention of adventurous Australians but as Niseko’s word got out, the next to arrive were Northern Europeans and then now the South-East Asians.
With all the attention, world-class developers have committed heavily to properties in the area making Niseko a gold standard example of what can happen to an area that Japanese people gave up on if given foreign participation.
Source: https://tochidai.info/hokkaido/
”Kutchan-cho has really benefited from a lot of foreign direct investment and some of the early movers have already exited with a large capital gain.” Nakazawa said.
“That said, the area is still in the early stages of what it can be once easier access to large Japanese metro centers are established. A perfect example is the Shinkansen extension from Hakodate through Kutchan station to Sapporo planned for a 2030 open as an appeal point for Sapporo’s 2030 Winter Olympic bid.”
Nakazawa continued. “If Sapporo gets the nod then Niseko has been put forward as the venue for downhill events meaning should that come to pass, easier access to Niseko plus the world’s focus on a global event will further push the area out in front.”
Muwa Niseko, an example of what is on offer. Click here for more information.
Patience Realty has deep roots in the Niseko area and not only is currently offering select properties to clients but also the firm’s ownership has been active in the area too.
Patience Realty was incorporated in September of 2022 and is a joint venture between the Patience Capital Group and Capital Brain; the former currently managing a hospitality fund and a separate residential fund for institutional clients.
“What Patience Realty is doing is extending the already best-in-class institutional services offered by the parent company but to the individual investor.” said Nakazawa.
