"Where is the best deal for buying real estate in Tokyo, New York and London?"
A thorough comparison of the prices, investment yields and rental rates of the luxury real estate markets in the world's three largest cities provides useful information for those considering real estate investment or moving abroad.
1. Price Comparison of Luxury Real Estate Markets | How Much Space Can You Buy for $1 million?
When buying real estate, the "How much space can I buy with the same budget?" is a big factor.
Here's a comparison of the sizes of properties you can buy for 150 million $1 million (Tokyo: Minato Ward/Chiyoda Ward, New York: Manhattan, London: Mayfair Chelsea) in upscale neighborhoods in each city.
Area you can buy for $1 million (m2)
[Table: Area you can buy for $1 million (m2)] * Table supplement
●You can buy more space in Tokyo than in Tokyo, where you can buy about 64m2 of space, compared to 34m2 in New York and 33m2 in London.
●Prices in New York and London are skyrocketing, and brand value is influencing prices.
●Real estate in Tokyo is cheap and attractive as a residential property.
●The Japanese real estate market is relatively stable, and there is little risk of sudden price rises or bursting of a bubble.
2. Rent Rates in Luxury Rental Markets | Which Cities Are the Most Expensive?
Rent rates in the rental market are also important when buying real estate for investment purposes.
We compared the average rent for luxury rentals (100m2 class) in each city.
Table 2 Monthly rent for luxury rentals (dollars)
●Luxury rentals in New York have the highest rents, ranging from $12,000 ~20,000.
●The rental market in Tokyo is relatively stable and vacancy rates tend to be low.
●In London, rent prices are higher but more stable than in Tokyo due to many high-end residential areas.
●Rent prices in New York and London tend to fluctuate greatly depending on economic conditions, so long-term investments should be prudent.
3. Comparing Real Estate Investment Yields | Which cities are the most profitable?
When thinking about real estate investment, one important factor is the ratio of annual rent income to purchase price (surface yield).
Image (with one-column annotation)
Real Estate Investment Yields by City
●Tokyo's relatively high investment yield of about 4.6% makes it an attractive market for investors who value profitability.
●Yields in New York and London are low, ranging from 3.5% to 3.3%, but asset values are expected to rise.
●Tokyo is a good choice for short-term returns, and New York and London are good choices for long-term asset management.
●Tokyo's luxury real estate market is also attractive to foreign investors, and international demand is expected to increase in the future.
4. Conclusion | It is important to assess market characteristics and make decisions from a long-term perspective
Comparison of Luxury Real Estate Markets
●Large properties can be purchased at relatively affordable prices in Tokyo, with high investment yields.
●Rents in New York are high, and property values are expected to be maintained, but prices are soaring.
●London is a stable traditional luxury housing market, but yields are low.
●The market is always volatile, and the right choice depends on whether you are looking for short-term profits or long-term wealth building.
5. Frequently Asked Questions (FAQ) | Questions about luxury real estate investment!
Q1. What will the price of luxury real estate look like in the future?
It depends on the market trends of each city, but stable growth is expected in Tokyo. New York and London tend to fluctuate greatly depending on economic conditions.
Q2. Which city would you like to invest in?
New York is a good place to invest if you are looking for short-term profits, Tokyo is a good place to invest for long-term stability, and London is a good place to invest if you are looking for asset value.
Q3. What should I pay attention to when buying luxury real estate?
It is important to understand the differences in local real estate taxes and laws. Especially in New York and London, there can be high taxes.
6. Summary | Understanding Market Characteristics is the Key to Success in Real Estate Investing!
●Tokyo is easy to buy and has relatively high yields
●New York has high rents but also high prices
●London is stable and has a traditional luxury housing market
The real estate market is constantly changing. Use the latest data to find the best investment for you!
*Note *
The numerical data on luxury real estate prices, rental rates, and investment yields in each city discussed in this column are based mainly on the following public institutions and reliable sources.
Japan Real Estate Research Institute: Provides detailed data on the real estate market in Tokyo.
the Financial Services Agency: Publishes a report on the development of real estate information in Japan.
Tokyo General Affairs Bureau: Provides project data on strengthening Tokyo's international competitiveness.
However, these data are current at the time of publication and may differ from current figures due to market fluctuations and changes in economic conditions.
Notes:
*The contents of this column are based on my own analysis and do not guarantee the accuracy or completeness of the information.
*Because real estate markets fluctuate due to many factors, results may not always be as described in this column.
*This column does not recommend any particular investment behavior, and investment decisions are made at your own risk.
For the latest information and specific investment decisions, we recommend that you refer to the latest data from professional real estate consultants and public institutions.
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