James Yamaguchi is the Director of RISE Corp. and has over 22 years experience in the real estate industry and established himself in the property sector after struggling to find an apartment in Tokyo for himself. His career began with a focus on local Japanese clients but has spanned to include foreigners and expats across the central Tokyo and Yokohama area.
REthink Tokyo spoke to James Yamaguchi about his experience and Tokyo's property market.
Tell me about your company in Tokyo, what do you do, and what sets your company apart from the rest?
We started RISE Corp. in 2015 with a commitment to contributing to society and providing the best service to make our clients happy. Since then, we have helped hundreds of clients who were completely new to Tokyo, start new lives as smoothly as possible, by not only helping them buy an apartment but also by providing all the necessary information needed to live and assimilate in Tokyo.
How do you best help a buyer or tenant?
Honesty is key when it comes to working with clients. It is our job to tell our clients the truth about Tokyo's available real estate and find them the best possible solution for their needs. Relationships with clients cannot work without effective communication, so we do our best to make sure everything is very clear from the start of a business transaction.
How do you best help a vendor selling or leasing their property?
When it comes to helping a vendor sell or lease their property we do our best to find them clients that will match their specifications. We have over 20 years experience in the real estate industry and have good networking partnerships with other realtors. Over 90% of our clients are also referred to us by other clients, which establishes a great deal of trust between all parties. What that means, is that clients are reassured we will find them the best housing solution, and vendors know that we will find the right people for their properties.
What are some of the defining moments in the Tokyo real estate/expat history?
The Lehman shock back in 2008 did some major damage to the market, but the biggest obstacle was the massive earthquake back in March 2011. Many expats, particularly many Europeans, fled Tokyo and as a result, the market really struggled for the first six months after the earthquake, but it was back on its feet within the year.
What are the key emerging markets/sectors that people should be looking to in Tokyo that you think will have an upside?
Tokyo has a number of upcoming events coming up such as the 2019 Rugby World Cup and the 2020 Tokyo Olympics. We are also expecting Japan's first casino to be built possibly in 2025, in either Osaka, Yokohama or Tokyo. These developments mean that housing in these areas, particularly apartments and the hotel industry will spike as people begin looking for accommodation leading up to these events.
Why did you first start working in the property industry?
I experienced a great deal of difficulty finding myself an apartment in Tokyo and thought that if it was so hard for me, imagine how much foreigners must struggle. So it became a goal for me to help as many people as possible in an honest way because I have first-hand knowledge of how they must be feeling.
What advice would you have for those looking to come into markets like Tokyo and set up business?
Every area of Tokyo has a different character. To have a successful business, business owners need to understand the character of the area they hope to work in, and understand the people of this area - how they think and feel - so that their new business can become a part of this character too. The initial set up can be challenging, but once the business and its products are recognised by the community and the market, there is great potential for success. Japan has a very large and strong market and I have seen a number of businesses set up successfully that are now doing very well.
What are some key opportunities in the marketplace at the moment?
The increasing number of brand new properties on the market has created intense competition and pricing wars due to the demand. Which means that there are many opportunities for properties in slightly older buildings (between 1982-2000) to be investigated. It is these properties that will provide great opportunities.
What advice do you have for people looking to buy affordable residences in Tokyo?
Prices in the centre of Tokyo are getting higher, so for affordable properties, looking outside the city centre is key. Meguro/Setagaya, Toyosu, Kawasaki/Musashikosugi in Kanagawa or Minatomirai in Yokohama are all active areas and property is more affordable there also.
Where is demand currently coming from, where is the interest focused at the moment? i.e. what sectors/wards have the strongest interest at the moment and where are the buyers based (Locals, Foreigners etc.)?
The "Triple A" area - Aoyama, Akasaka, Azabu - in the Minato Ward are considered to be high-grade areas with significant interest coming from both Japanese locals and foreigners. The areas mentioned in the previous response are also popular.
Where do you see the Tokyo market in five years?
With the Olympics and World Cup coming up, residential sales are expected to rise. It is often said that real estate follows the stock market, so if the Nikkei stock market continues to stabilise between 20,000 and 24,000 yen or higher, the property market will continue to rise also.
For more information about Tokyo's real estate market or to discuss properties for sale and rent, email James Yamaguchi via the contact details listed below.
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