Tapping into the Japanese Expatriate Market

DDproperty Editorial Team
Tapping into the Japanese Expatriate Market
Buy-to-let landlords should carry out due diligence ahead of purchasing an investment property. Identifying where the demand lies will ensure the property lets quickly and generates a revenue stream. Buy a property that is not attractive to a tenant, and it will be left empty with no rent coming in.
Some landlords prefer to focus on a particular pool of tenants. For example, those wanting to capitalise on the student market should look for properties near to Universities in safe and secure buildings that parents would be happy for their children to reside in. Those wanting to accommodate families should consider distance to local schools, larger units and the amenities in the building where children like to play and congregate.
One market that Bangkok’s landlords focus on is the Japanese. Bangkok has approximately 50,000 Japanese residents making the capital home to the fourth-largest Japanese population outside of Japan.
Thailand and Japan have a longstanding relationship that has led to thousands of Japanese companies setting up in the Kingdom to take advantage of the cheaper operating costs. Thailand also has a strong manufacturing reputation enabling Japanese global brands such as Honda, Nissan, Toyota and Panasonic to expand.
Typically, most Japanese residents live around Phrom Phong, Thong Lor and Ekkamai which are on the Light Green/Sukhumvit Line of the BTS Skytrain network. Visit these neighbourhoods within the Sukhumvit area, and it is easy to see the host of amenities geared towards this community from restaurants, retail outlets and Onsens.
Sukhumvit has become popular since many Japanese businesses are based in Chonburi
Homes in Tokyo are renowned for being small due to high land prices and a limited supply of land. Japanese residents are accustomed to living in small units but also enjoy the larger homes found in Bangkok since housing budgets go further.
Being very community-driven, they prefer to live near one another and so investors should focus on buying a property in Phrom Phong, Thong Lor and Ekkamai which already has a very thriving community.
This stretch of Sukhumvit has become popular since many Japanese businesses are based in Chonburi-the epicentre of Thailand’s manufacturing industry. Living in these neighbourhoods provides quicker access to this province while the family has easy access to the surrounding local Japanese amenities and schools.
Landlords should also consider the type of property that Japanese gravitate towards. Like many expatriate tenants, there is a preference for condominiums over standalone homes due to access to facilities and some newer Bangkok condominiums have facilities geared at the Japanese community. These include Japanese gardens, golf simulators and Onsens helping appeal to this pool of tenants and should be considered when looking for a property for a Japanese tenant.
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Disclaimer: The information is provided for general information only. DDproperty by PropertyGuru c/o AllProperty Media Co., Ltd. makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

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