Author：Lily Lee（Practicing China Lawyer, in Alliance with HW Group Inc.）

Taiwan's property market continues to experience price consolidation and declining transaction volumes due to ongoing credit restrictions, with demand largely limited to owner-occupiers. However, supported by wealth generated from Taiwan's stock market, some institutional investors and high-net-worth individuals have begun shifting their focus toward overseas real estate, with Japan emerging as one of the most attractive destinations.

According to research by Colliers Japan Research Department, approximately 36% of Japan's current real estate transaction volume is contributed by overseas capital, including investors from Taiwan. Kohei Kawai, Senior Director of Colliers Japan Research Department, noted that over the past decade, investors primarily focused on Japanese office buildings and core commercial assets for capital appreciation. However, as Japan gradually normalizes interest rates, inflation returns, and geopolitical uncertainty increases, investment strategies are evolving.

Residential, Hospitality, and Logistics Properties Become the Three Most Popular Asset Classes

Colliers Japan Research Department reports that the three major metropolitan areas—Tokyo, Osaka, and Nagoya—have a combined population of approximately 66.4 million, representing 53% of Japan's total population, nearly three times the population of Taiwan. The Greater Tokyo metropolitan area alone has around 36.9 million residents, accounting for nearly 30% of Japan's population. This exceeds Taiwan's total population and is more than five times the size of the Greater Taipei metropolitan area. Such a large population base continues to support strong demand for residential, commercial, and logistics properties.

Japan also benefits from a highly developed transportation network. With more than 100 airports nationwide and an extensive Shinkansen network exceeding 3,300 kilometers, major cities such as Osaka and Fukuoka can be reached from Tokyo within a few hours, creating an efficient and integrated economic zone that further supports regional development and real estate demand.

Against this backdrop, residential, hospitality, and logistics properties have become the three most sought-after investment sectors. Residential properties in central Tokyo and surrounding areas, in particular, continue to maintain high occupancy rates and stable rental income due to strong housing demand, making them a key asset class for institutional investors.

Investment Preferences Vary by Transaction Size

According to Colliers Japan Research Department:

• For investments exceeding JPY 1 billion, office properties remain the most popular investment target.

• For investments below JPY 1 billion, residential properties are the preferred choice among investors.

Growing Interest from Taiwanese Investors

From the perspective of the Taiwanese market, Huang Cheng-Chung, Deputy Managing Director of Investment Services at Colliers Taiwan, noted that interest from Taiwan's high-net-worth individuals and corporate investors in Japanese real estate has increased significantly in recent years, with inquiries continuing to rise.

In addition to traditional office assets, residential, hospitality, and logistics properties, which offer relatively stable income streams, have become increasingly important considerations for Taiwanese investors evaluating opportunities in the Japanese real estate market.