Osaka's hosting of the World Expo has caused Tokyo B&B rates to skyrocket 1.8 times?

Recently, the 43rd World Expo opened in Izumisano City, the gateway to Osaka Rinku.

With the theme "Designing the Future Society, Letting Life Shine," the city, which is welcoming a comprehensive exposition after 55 years, is expected to draw28 million viewers worldwideIn the next few years, the number of overseas visitors will reach 3.5 million, and the direct economic benefits will top2 trillion yen (about $14 billion)The

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Expo magnetism

Sparking Tokyo's B&B Economy

Despite the fact that the main venue is in Osaka, the radiant effect of the Expo has beenSignificantly boosting tourism growth in Tokyo and other Kinki urban agglomerations.

Shinkansen 2.5-hour traffic circle is built out"Golden Tourism Corridor"Over 60% of international tourists choose to visit the Expo after completing their visit.Traveling to Tokyo(math.) genusDisneyland, Asakusa Temple, Ginza shopping district, etc.Top Attractions Formation"Tourism Siphonage Phenomenon"The

Osaka's modern urban appeal complements Tokyo's cultural depth, and the double exposure has increased Japan's tourism appeal exponentially.

The latest data from the Tokyo Metropolitan Government Tourism Bureau shows that the average price of hotels during the preparations for the ExpoUp 23% year-on-yearReservation rate for B&Bs around transportation hubs such as Ueno and AsakusaBreakthrough 91%.. The average length of stay of international tourists was extended from 4.2 days to 6.8 days, driving a 18% surge in spending in high-end commercial areas such as Ginza and Roppongi.

In response to demand for lodging, Tokyo Governor Yuriko Koike announced that12,000 new legal lodging units.Shibuya, Meguro and other core districts' B&B ROI expected to reach 8.3%, far exceeding the traditional hotel's 5.71 TP3T.

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Triple value-driven investment boom

Short-term traffic dividends

Investors holding B&B properties have seen their assets increase in value over the past five years by as much as1.8 times the increase in overall house prices in Tokyo.

Nightly prices for high-end lodgings in core locations have climbed to 20,000-50,000 yen (about 900-2,300 yuan), with demand still outstripping supply.The Japanese government has further lowered the barriers to entry by offering foreign investors real estate tax breaks for up to 10 years.

Long-term value-added protection

Real estate in the core area of Tokyo has shown strong risk resistance, with the average price of a 70m2 apartment at CNY3.96 million (only CNY1.95 million for the same area in Osaka), but rental returns have stabilized at 5%-8%.

the economic uplift brought about by the Expo.It is strengthening the confidence index of international capital in Tokyo real estate.

Upgrading of the demand structure

As one of the world's top 5 international metropolises, Tokyo's tourism (receiving more than 15 million international tourists annually) and business needs (70%, one of the world's top 500 companies, is headquartered in Japan) form a dual support.

Even if Osaka's popularity drops off after the Expo closes.Tokyo will continue to benefit from its international hub status, creating a "traffic funnel effect".

The current market presents three major signals of opportunity:

❶ Record low vacancy rates for B&Bs in core areas;

❷ Consumption power of high-end customers continues to be released;

❸ Government releases policy dividends.

For high net worth investors, laying out Tokyo B&B assets can not only capture the short-term dividends of the Expo, but can alsoStrategic position in globalized asset allocation.

As the Expo effect continues to fester, theThe Tokyo B&B market is enjoying a once-in-a-decade period of revaluation.

If you are interested in investing in a B&B in Japan, please feel free to contact us!