The yen has become a safe haven again, the global capital "burst buy" Japanese real estate!

Recently, the U.S. "reciprocal tariffs" policy triggered a sharp fall in global stock markets, risky assets were sold, and market panic spread.

Against this backdrop, Goldman Sachs Group released its latest judgment:The yen will be the world's preferred currency to hedge against the risk of a U.S. recession and trade tariffs.

Goldman Sachs believes that global market risk aversion is elevated as uncertainty about the U.S. economic outlook rises and tariff measures against China escalate again.The yen will be re-recognized as the "best of the safe assets".

#01

The yen has become a "safe haven" again.(math.) genusMoney is creeping back in

Why has the yen been able to buck the trend and break out at a time when global markets are in mourning?

The yen, as one of the global reserve currencies, has long been a safe-haven windfall.Goldman Sachs Analysis:

The laws of history are at work.

Whenever the U.S. stock market plunge, U.S. bond real yields under pressure, the yen will open the "gold mode". Goldman Sachs data show that over the past ten years, the S&P 500 index fell 1%, the yen against the dollar average appreciation of 0.8%;

Recession expectations catalyzed

If the risk of a U.S. recession intensifies and global risk aversion heats up, the yen could rise to 140 against the dollar, or even higher;

valuation depression effect

The yen exchange rate depreciated more than 30% before the epidemic, foreign capital is ushering in the "once in a decade" window of entry - buy to enjoy the exchange rate + asset double value-added space.

The tariff war initiated by the United States has inflamed global trade tensions. This not only pushes up the cost of imports, but also increases uncertainty in global supply chains.

As a result, more and more investors areLooking beyond the dollar, low valuationsboth (... and...)Resilient to riskof assets. And at this point, the"Low Yen + Cost Effective Japanese Real Estate"Right to the core needs.

#02

Japanese Real Estate: The Undervalued "Three Musketeers of Haven"

For investors.Japanese real estate has several natural advantages, is being revalued by global markets:# 1️⃣ Exchange Rate Hedging Magic #

• The current yen is at historic lows and the cost of exchange is low;
• The size of foreign exchange reserves held by the Bank of Japan amounted to $1.2 trillion, firmly ranking second in the world;
• Historical data shows that the average annual increase in dollar-denominated Japanese real estate during the yen appreciation cycle was 12.7%.

# 2️⃣ Anti-Cycle Defense Shield #

• Japan's real estate market is highly transparent, data is publicly available, and prices are driven by actual supply and demand;
• The rent-to-sale ratio has stabilized at 4-61 TP3T, well ahead of London (2.11 TP3T) and New York (1.81 TP3T);
• The vacancy rate is only 1.71 TP3T, the lowest since 1992.

# 3️⃣ Institutional Dividend Plus #

• Foreigners may 100% hold title without capital controls;
• Return on hotel investment in Ginza's core soars to 8% as B&B licensing system is relaxed;
• The government's introduction of "skill-specific" visas has injected a long-term demographic dividend into the real estate market.

As Goldman Sachs points out:"The yen tends to perform best when both U.S. interest rates and the stock market fall."

Against the backdrop of continuing global economic uncertainty.Yen and Japanese real estate "safe-haven linkage" effect is becoming more and more significantTheLow interest rates, stable returns, policy transparencyThe three pillars make Japanese real estate a preferred subject for global capital allocation.

As Japan further liberalizes its market, the value of this "safe haven" will continue to grow. If you are interested in investing in Japanese real estate, please feel free to contact us!