Bangkok Bank says there are great opportunities to invest in real estate in Japan's tourism sector as the yen has depreciated by 30% and is at its weakest level in past 50 years. The Bank can provide loans in the local currency so people can take advantage of negative interest rates and eliminate currency exchange risks, while taking advantage of trends such as the aging society and the rising youth market. The Bank has a deep understanding of the Japanese market as a 'trusted partner' that takes Thai businesses to Japan.
Mr. Thawee Phuangketkeow, Senior Vice President and General Manager - Japan Branches and the Tokyo Branch Manager said the yen has depreciated by 25 - 30% which is a rare occurrence that only happens once in 50 years. This is a great opportunity for High Net Worth customers and Thai entrepreneurs interested in investing in assets in Japan at s special low price, especially real estate, land, houses and condominiums Japanese law allows foreigners to own real estate for both investment and to live.
"We believe the government of Japan will continue to attract tourists in the long term to boost economic growth and the hospitality sector will be a major industry. Large international hotel chains currently compete to invest in these assets for their business expansion and they are also enjoying benefits from the weak yen which only happens once in 50 years. There are opportunities for Thai entrepreneurs to invest in Japan for business or to buy assets to live. Many people buy condominiums in Hokkaido to stay a month per year for their ski trip. There are Asset Management companies that can help manage the properties by renting them out under the Airbnb scheme including daily, weekly, monthly rentals which generates income".
For future opportunities in Japan, Mr. Thawee said two interesting markets are the aging society, as people aged 65 and over account for 30% of population. They have their lifetime savings and focus on consuming services that make their life convenient e.g. healthy food delivery or full service hotels. Another market is teenagers. This group is growing in number but they don't have high purchasing power, they don't cook and prefer economically priced food, but they don't care about a brand. These teenagers are not interested in full-service hotels but prefer to stay at Airbnb accommodation.
Mr. Thawee said that businesses or individuals investing in Japan may apply for loans from financial institutions instead of using their own capital as Japan's interest rate is still very low and there are negative deposit interest rates. Loans should be made in yen to reflect income in yen to reduce risks from currency exchange. This is an important market opportunity for Bangkok Bank's Japan branches because Bangkok Bank is the only Thai bank in Japan that provides a full financial service and it has a license to operate a financial institution which is similar to local banks. This means the Bank can provide deposit and loan services in local currency and can fulfill customers' needs.
"Our strength is our service as we truly understand Thai people, focus on keeping good relations, and we take care of customers in the long term. We have been in Japan for 68 years and have branches in Tokyo and Osaka. We are confident that we deeply understand the Japan market and businesses. We have a team of Thai and Japanese people who are ready to be a 'trusted partner' to take Thai businesses and investors to the Japan market smoothly and to grow together in the long term", said Mr. Thawee.
Source: Bangkok Bank
