Japan’s population is forecast to drop to less than 100 million by 2050 ( 126 million of April, 2020). The declining birth rate is one of the major structural challenges in Japan today.
Shrinking population will lead to the labor shortage, losing the country’s ability to accumulate capital stock and enhance capital value. Furthermore, Japan’s closed society could accelerate the population decline and cast a long shadow over the country’s facing issues.
According to a UN survey, there are currently 270 million immigrants worldwide, 74% of which are working-age population (ages 20-64). Especially, younger groups of migrants are exploring a better quality of life. As a result, they will contribute to the community and economic vitality as well as a vibrant culture, promoting the country’s attractions. Immigrants will likely result in demand for capital and generate cross-border flows of capital.
The number of immigrants in Japan has been rising recently. However, we are yet feeling why Japan has such few immigrants despite the country’s wealth and cultural attractiveness. When you visit Japan and talk with us, you would feel that Japan has the potentials to attract more people and capital.
“Prices are declining” – consumers may favor the deflation hovering in Japan. However, this may also mean that demand is declining as a result of the population decline. only Only a sense of “affordable” would not settle people down.
Japan has a large number of attractiveness including regional diversity, traditional culture, and accessibility of cities to nature. The closing society appears to keep people and capital from moving to Japan despite its potentials.
In real estate, it is essential that the value of preserved assets continue to appreciate in the long-term. More residents will create more jobs. More entrepreneurs will bring various, attractive business which we have never seen.
Aoyama REAX is committed to cultivating the interests of people and assisting people in moving and investing in Japan. Our ultimate goal is to transform Japan into the global talent hub and the most desired investment destination. When the transition completes, the world economy and its future will be driven and led by Japan where people most desire to “work, live, and settle”. Opening Japan is essential to become our envisaged place.
“Connecting with the world” will brighten the Japan’s future. Aoyama REAX will continue to bridge between Japan and the world.