This presentation was given to Silicon Valley Association of Realtors by Manubi Suzuki.

1. Japan Market Update
1
Manabu Suzuki
March 15, 2023
Cheap Yen, Steady market and BARGAIN opportunities
Copyright by International Property Agent Inc.All Right Reserved 2018

2. Japan is just like anywhere in the World.
We enbrace “new normal“ post-COVID days.
2
Copyright by International Property Agent Inc.All Right Reserved 2018
Dri/
People are back in
works in Tokyo CBD
from teleworks
People start travelling
and drinking. Regained
pre-COVID activity level.

3. In 2023, Japan is expected highest growth
in G7 countries, first time in 30 years.
3
Copyright by International Property Agent Inc.All Right Reserved 2018
Japan 1.8%
Canada 1.5%
USA 1.4%
France 0.7%
Italy 0.6%
Germany 0.1% UK minus 0.6%

4. In 2022, Japan enbraces lowest inflation rate
in G7 countries.
4
Copyright by International Property Agent Inc.All Right Reserved 2018
Japan 3.0%
France 5.5%
Canada 6.9%
USA 8.2%
Italy 8.9%
Germany 10.0% UK 10.1%

5. Japan still manages exceptionary low
interest rate in G7 countries
5
Copyright by International Property Agent Inc.All Right Reserved 2018
Japan 0.50%
Germany 2.37%
France 2.86%
Canada 3.17%
UK 3.56%
USA 3.75% Italy 4.27%

6. Low interest rate means Cheap Yen
6
Copyright by International Property Agent Inc.All Right Reserved 2018
100 JPY equates
US 74 cents
Euro 70 cents
Pounds 62 cents
Canada 1.0 dollar
Aussie 1.1 dollar
It was approx 90 US cents
a year ago, before FRB
raises US interest rate.

7. 7
Why asset funds flock in Tokyo market?
In the eye of institutional investers and fund managers, Tokyo’s
property market is considered ‘goldilocks‘, in short-mid term.
１） Modest inflation
2) Low interest
3) Cheap yen
4) Modest rental return
5) Modest capital appreciation
Copyright by International Property Agent Inc.All Right Reserved 2018

8. Tokyo property is in long-term upward trend
8
Copyright by International Property Agent Inc.All
Right Reserved 2018
Before 1990 Japanese economic miracle
1990 - 2010 Sluggish ‘Lost two decades‘
After 2010 Picks up again (only Stock market and Tokyo property)
Copyright by International Property Agent Inc.All Right Reserved 2018

9. Tokyo is exceptional in Japan
9
Copyright by International Property Agent Inc.All
Right Reserved 2018
Tokyo is the only Japanese city that exceeds 1991peak
Tokyo 38.5M/㎡(1991)→12.9M/㎡（1997）→40.1M/㎡（2016）
Osaka 35.0M/㎡(1991)→4.6M/㎡（2004）→13.8M（2016） @39%
Nagoya 28.0M/㎡(1991)→4.0M/㎡（2004)）→9.3M/㎡（2016） @33%
Copyright by International Property Agent Inc.All Right Reserved 2018

10. Tokyo property gains during COVID-19
10
Copyright by International Property Agent Inc.All
Right Reserved 2018
During 2020 (COVID) Tokyo new apartment price is up
・Tokyo average 72.8M→77.1M（5.8％↑） Per sqft $933
・Tokyo uptown 86.2M→95.9%（11.2％↑） Per sqft $1148
Copyright by International Property Agent Inc.All Right Reserved 2018

11. Tokyo’s safe haven : 10 km radius from CBD
11
Tokyo version of London’s zone 1/2/3 is “inside 8th ring road
and Arakawa river” (roughly 10 km from the Center), where
global investor buys and property value keep increases.
Copyright by International Property Agent Inc.All Right Reserved 2018

12. Investment recommendations
12
Savvy investors looks into ‘low per sqft‘ priced apartments
Buy cheap and enjoy capital appreciation. It is relatively
common for built year 1980s - early 2000s.
My expectation is... 50% of newly built apartments.
- $465 per sqft or lower for Tokyo downtown
- $574 per sqft or lower for Tokyo uptown
- $700 per sqft or lower for Tokyo prime location
Copyright by International Property Agent Inc.All Right Reserved 2018

13. 13
1）Asakusa apartment - Tokyo downtown
Built year1983
3 min walk from station
$201,400 (26.99M JPY)
Floor area 540 sqft
NOI 4.02%
Copyright by International Property Agent Inc.All Right Reserved 2018

14. Copyright by International Property Agent Inc.All
Right Reserved 2018
14
2）Chiyoda apartment - Tokyo Prime Location
Built year 1984
2 min walk from station
$259,700 (34.80M JPY)
Floor area 433 sqft
NOI 3.90%
Copyright by International Property Agent Inc.All Right Reserved 2018

15. http://ipag.jp
Our Website
We work with you for successful deals and
provide property management in Tokyo
15
Copyright by International Property Agent Inc.All Right Reserved 2018

16. 16
Copyright by International Property Agent Inc.All Right Reserved 2018