S'pore property firms developing a yen for Japan real estate

Investors have poured hundreds of millions of dollars into market in first quarter alone

- Alyssa Woo

Japan is shaping up to be the land of the rising sun for property developers in Asia.

After receiving a record 36.9 million international tourists in 2024, Japan is expecting 60 million visitors by 2030. And with a relatively strong Singapore dollar vis-a-vis the yen, and abundant potential to develop tourism in other less visited areas in the country, Singapore real estate and property developers have been making their mark there, collectively investing hundreds of millions of dollars in the first quarter of 2025 alone.

First off the post was CapitaLand Ascott Trust, which announced the acquisition of the ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae in Japan for 21 billion yen (S$190 million) in January, bringing its Japan portfolio to a total of two serviced residences, four hotels, 23 rental housing properties and a student accommodation property.

The following month, Far East Hospitality Trust (FEHT) Reit announced its acquisition of the 319-room Four Points by Sheraton Nagoya hotel at Japan's Chubu International Airport for six billion yen.

Mr Gerald Lee, chief executive officer of FEHT, said four-star business hotel properties like its acquisition are "more tradeable", and are versatile as they cater to both business travellers and tourists.

While there has been talk about potential interest rate hikes by the Bank of Japan, Mr Lee said the real estate investment trust (Reit) had managed to lock in a four-year fixed rate loan for the Nagoya acquisition.

FEHT had announced in a bourse filing on April 16 that it had entered into a $22 million sustainability-linked facility agreement with an institutional bank, though it did not specify what the agreement would be used for.