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Why Are Singaporeans Overtaking Hong Kong Buyers in Japan’s Property Market?
Singaporeans have become FMI Japan’s largest buyer group, now accounting for half of all transactions — up from 30% last year — according to reporting by CNA (Channel News Asia). A weak yen, record tourism, and low borrowing costs are together driving unprecedented Singaporean interest in Japan real estate.
The shift has been fast. Where FMI Japan once held Japan property sales events in Singapore just once every couple of months, this year alone the company has organised at least 15 events across 12 boutique developments in Tokyo, Osaka, Nagoya, and Kyoto — and Singaporean buyers have moved from a minority share to the single largest buyer nationality at FMI Japan, displacing Hong Kong investors who previously led.
The trend isn’t unique to FMI Japan. CNA reported rising attendance at Japan property seminars industry-wide, with units selling on the spot. A two-bedroom unit in Tokyo’s Asakusa district sold for under S$500,000 at OrangeTee’s first official Japanese property event last month, and Savills Singapore sold out all 60 units of a boutique Osaka development in July, with half going to Singapore-based buyers.
What’s Actually Driving Singaporean Demand for Japan Property?
Four forces are compounding at once, per CNA’s reporting and market commentary from Cushman & Wakefield and Realion.
A significantly stronger Singapore dollar against the yen: At current exchange rates, S$1 buys around 117.6 yen — roughly 12% more than three years ago, when Japan reopened its borders to international travel. For Singaporean buyers, that translates directly into lower acquisition costs and better value per square foot than they’d have gotten a few years back.
Borrowing costs that remain low by regional standards: Japan’s benchmark rate sits at 0.5%, comparatively low versus most Asian markets. Hideaki Suzuki, executive director of research consulting at Cushman & Wakefield, noted that with new Japanese Prime Minister Sanae Takaichi favouring expansionary fiscal policy and loose monetary policy, market expectations have shifted further toward a prolonged period of low rates.
Tourism numbers still breaking records: Visitor arrivals across Japan continue climbing, fuelling demand for short-term rental accommodation. Osaka alone welcomed 14.6 million visitors last year, with the government targeting over 16 million for this year. The World Expo, which concluded in October, brought an additional 27 million domestic and international visitors to the city over six months. (For more on how this tourism boom is showing up in the data, see our Osaka land price breakdown.)
A meaningful push factor from Singapore itself: Beyond what’s pulling investors toward Japan, Singapore’s Additional Buyer’s Stamp Duty (ABSD) makes owning multiple domestic properties prohibitively expensive for many investors — pushing capital to look overseas instead. Justin Quek, deputy group chief executive at Realion, pointed out that yields in markets long favoured by Singaporeans, such as Australia and the UK, may no longer be attractive given higher domestic interest rates in those countries by comparison.
Underlying all of this, property industry commentators told CNA that Japan continues to be viewed as a safe haven for international capital — and as a market Singaporeans are already broadly familiar with, which lowers the psychological barrier to a first purchase compared to less familiar jurisdictions.
Is It Legal for Singaporeans to Buy Property in Japan?
Yes. Japan places no restrictions on foreign ownership of real estate — a point Realion’s group chief executive Desmond Sim highlighted as a core part of the market’s appeal to Singaporean investors. There’s no residency requirement, no special approval process, and no foreign buyer’s tax, which stands in contrast to several other markets Singaporean investors have traditionally favoured.
Where Is the Demand Concentrated?
CNA’s reporting points to Tokyo, Osaka, Nagoya, and Kyoto as the four cities where FMI has been running the bulk of its 15-plus events this year. Tokyo remains the most familiar entry point for many first-time buyers, but Osaka in particular has drawn intense interest — driven by the scale of the World Expo’s visitor numbers and continued momentum from major redevelopment projects across the city. (For a deeper look at how Osaka stacks up against Tokyo and Fukuoka specifically, read our Tokyo vs Osaka vs Fukuoka investment comparison.)
How FMI Japan Fits Into This Story
FMI Japan has spent close to a decade building the track record now driving this surge in Singaporean interest — over 50 projects delivered since 2015, under the leadership of founder Amous Lee, a Singaporean investor with more than two decades of experience in international property markets. (You can read more about that history in our decade-long track record from Singapore to Tokyo and Osaka.)
What’s changed isn’t FMI Japan’s fundamentals — it’s how many Singaporean investors are now aware of them, and how compelling the entry conditions have become at the same time. For investors weighing whether to attend one of these increasingly well-attended seminars themselves, our guide on what to expect at a verified Japan property seminar in Singapore is a useful starting point.
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FAQ
Four factors are converging: a stronger Singapore dollar against the yen (up roughly 12% over three years), Japan’s low 0.5% benchmark interest rate, record tourism numbers boosting short-term rental demand, and Singapore’s own Additional Buyer’s Stamp Duty pushing investors to look overseas for better yields, according to reporting by CNA.
Yes. Japan places no restrictions on foreign property ownership — no residency requirement, no special government approval, and no foreign buyer’s tax. This openness is one of the key reasons Japan has become attractive relative to other markets with more restrictive foreign ownership rules.
As of the CNA report, S$1 was worth approximately 117.6 yen — about 12% more than three years ago, when Japan reopened its borders to international travellers following the pandemic. That shift has materially lowered the effective acquisition cost for Singaporean buyers.
Osaka welcomed 14.6 million visitors in the most recent year reported, with government targets exceeding 16 million for the following year, and the World Expo alone brought 27 million visitors to the city over six months. That scale of tourism demand, combined with ongoing redevelopment, has made Osaka a increasingly prominent market alongside Tokyo, Nagoya, and Kyoto.
Rising demand and rising prices generally move together, so timing always carries some risk regardless of the market. What matters most for any individual buyer is whether the specific asset, location, and financing structure fit their goals — not whether they’re first or late to a broader trend. Speaking with a licensed local team about current inventory and market conditions is the most reliable way to evaluate that for your own situation.
