Tokyo Market Overview Why Central Tokyo & Why Now? Tokyo Market - PowerPoint PPT Presentation

Tokyo Market Overview Why Central Tokyo & Why Now? Tokyo Market Report

Tokyo Market Report Tokyo has the LARGEST GDP of all major cities in the world. Tokyo has the highest GDP of City as of 2013 at USD 1.52 trillion or JPY 156 trillion (Figures in billions of USD, taken from 2013 GDP figures)

Tokyo Market Report Population trends in Tokyo have been increasing steadily for over the past 60 years. Tokyo Population as of 2013 was 13,290,000 Population of Greater Tokyo was 37,555,000 (2014) 
 14 13.29 13.18 13.08 12.85 12.59 12.06 11.86 11.83 11.77 11.67 11.62 11.41 10.5 10.87 9.68 8.04 7 7.35 6.37 6.28 5.41 4.49 3.5 3.7 3.49 0 1920 1945 1970 1995 2020 (Figures rom Ministry of Internal Affairs and Communications and Tokyo Metropolitan Government)

Tokyo Market Report Tokyo and Suburban Area Historical and Growth Population Projections

Tokyo Market Report Foreign Population also increases. But.... Foreign Population in Tokyo 23 rd wards is 3.96% Dubai is 83.02%, Hong Kong is 42.59% ¡ ¡ 500,000 ¡ ¡ ¡ 387,500 ¡ ¡ ¡ 275,000 ¡ ¡ ¡ 162,500 ¡ ¡ ¡ 50,000 ¡ 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Source: Tokyo Metro

Tokyo Market Report Foreigner Bank in Tokyo. As of Jan. 1 2014, there were 394,410 foreigners in Tokyo (Figures from Tokyo Metropolitan Government)

Tokyo Market Report Decreasing in Tokyo Office Vacancy Rate 10.00 ¡ 7.50 ¡ 5.00 ¡ 2.50 ¡ 0.00 ¡ 1990 1998 2005 2013 2020


 
 Japan Growth Potential 
 Abenomics 
 2020 Tokyo Olympics 
 Special Economic Zones 
 Casino and Integrated Resort 
 Tourism Business

Japan Growth Potential Abenomics has 3 arrows of implementation: 1) A massive financial stimulus 2) Aggressive monetary easing from the BOJ 3) Structural reforms to boost Japan’s competitiveness So, how’s it going so far?

Tokyo Market Report Stock Market UP. JPY 15,000 Double LDP landslide JPY 8,000 LDP Landslide Victory Nikkei 225 (NKY)

Tokyo Market Report Weaker JPY JPY 100 20% Down JPY 80 USDJPY FX Rate

Tokyo Market Report Real-Estate Price will follow REIT index. Real – Estate Price

Tokyo Market Report International Sports Event in Tokyo, 2019 and 2020 Both Events will take place within a compact 8km radius. top class infrastructure. ¡ Tokyo taking advantage of improvements on already • billion USD) ¡ Potential economic impact of 3 trillion Yen (29.7 • Creation of over 150,000 jobs ¡ • Construction budget of over 383 billion yen for 11 • new facilities and renovation on existing facilities

Tokyo Market Report Proposed Special Economic Zones: Asian Headquarter District The Tokyo Metropolitan Government launched the Special Zone for Asian Headquarters project as a new plan to attract foreign companies to Tokyo, with the aim to make Tokyo the preferred site in the Asian region for regional headquarters and R&D centers. Tax Incentives ¡ • Low interest Loans ¡ • Quicker immigration process ¡ • Business and Living Support ¡ • Multiple Languages Support •

Tokyo Market Report Proposed Casino and Integrated Resort Profits will be heavily taxed, which will be used to lower government dept., and increase public ● spending. ¡ Major Casinos have made plans to invest; Wynn resorts will consider of investing more than 4 billion ● USD. ¡ Bloomberg Industries Analyst indicated that Japan has the potential of becoming the ‘next big thing’ ● beyond Macao.

Tokyo Market Report Improvement in Tourist Business 10million Visitors to Japan in 2013 2013

Tokyo Market Report Improvement in Tourist Business Country # Tourists in 2012 Japan 8,358,000 (exceeded 10,000,000 in Dec 2013) France 83,013,000 United Kingdom 29,282,000 Hong Kong 23,770,000 Singapore 11,098,000 USA 66,969,000 Australia 6,146,000

Tokyo Market Report What’s coming after 2020?

Comparison 
 International Real Estate Market

Tokyo Market Report Comparison on International Real-estate market Source:Global Property Guide

Tokyo Market Report Tokyo Rent is Same as Hong Kong, but Double in Price. Source:Global Property Guide

Tokyo Market Report Tokyo Prime Residential in Comparison to Singapore Roppongi Hills Park Mansion The Westminster Scotts Square Orchard Residence Draycott 8 Residence Roppongi Roppongi Net Price Gross Unit Price Price* Price Property Bed Unit Area Tenure per sq ft Property Bed Area Tenure per sq ft (SGD) (SGD) (sq ft) (SGD) (sq ft) (SGD) Scotts 1 635 $2,250,000 $3,543 Roppongi Hills 2 1,224 $3,125,000 $2,553 Freehold Freehold Square 3 1,249 $4,800,000 $3,843 Residence 3 1,249 $2,525,000 $2,022 � Park Mansion 3 1,305 $3,375,000 $2,587 Orchard Freehold 3 1,808 99 years $6,500,000 $3,600 Roppongi 3 1,723 $5,000,000 $2,902 Residence The 2 1,263 $2,937,500 $2,326 Draycott 8 4 2,900 99 years $7,250,000 $2,500 Westminster Freehold 3 1,622 $4,000,000 $2,466 Roppongi * Converted at JPY80 = 1 SGD Tokyo prime residential is very attractive compared to Singapore as: (1) Most common property ownership type is freehold (vs. leasehold in Singapore); (2) Price is expressed on a NET AREA basis (vs. GROSS AREA basis in Singapore). Source: Mitsui Fudosan Realty, Grosvenor

Tokyo Market Report From the lowest point in 2000, there has been a growth of 30% in 2006 land prices. 24,000,000 18,000,000 230% UP 12,000,000 200% UP 6,000,000 0 1985 1994 2003 2011 2020 Land Price Fluctuation for Ginza 3-chome

Tokyo Market Report What is Japan Bubble? 1,600.0 Sydney ¡Established ¡Houses HK ¡Apartment ¡Prices Tokyo ¡ResidenHal ¡Land 1,200.0 800.0 400.0 0.0 1983 1988 1993 1998 2003 2008 Data series indexed to 1986 price. Sydney Established Homes data, Tokyo Residential Land Price data, HK apartment prices 100-160sqm Source: ABS, Japan MITT and Ratings and Valuations Department

Tokyo Market Report What is happened in mini Bubble? Roppongi Hills Residence DOUBLED IN PRICE What happen this time?

Tokyo Market Report What is current trend in Tokyo real-estate market? Construction Cost UP Land Value UP Anticipation on Rise in New Apartments UP

Tokyo Market Report What is the rental market look like in Tokyo now? High potential to see an increase in rental prices in the following years

Investing in Japanese Real September 27, Estate 2014

Company ¡Overview Our ¡Company ¡is ¡Active ¡in ¡the ¡Following ¡Areas Japan Non-Resident Tax Filing Japan Resident Tax Individual Filing U.S. Expat Tax Filing Tax Services Canadian Income Tax (Resident & Non Resident) Japan Corporate & Corporate Consumption Tax Treaty Based Taxation YOUR LOGO

Investing ¡In ¡Japanese ¡Real ¡Estate Presentation ¡Overview 1 Introduction 2 Rental Income 3 Withholding Tax 4 Capital Gains – Short Term vs Long Term 5 Other ¡Taxes 6 Tokumei Kumiai ( GK-TK) 7 Conclusion – Q&A YOUR LOGO

Investing ¡In ¡Japanese ¡Real ¡Estate Tax ¡planning ¡& ¡Practical ¡Considerations Overview • One of the most difficult investment decisions is purchasing property, more so when that property is in a foreign country. � ▪ Because tax and legal systems differ with each jurisdiction, investors need to understand the local implications of their proposed property transactions before investing. � ▪ In order to maximize investment opportunities, it is vital for investors to consider tax planning opportunities and specific tax obligations. � ▪ Both resident and non-resident individuals or companies may invest or purchase property in Japan. � • Tax planning opportunities and the level of tax compliance required are based on the residency status of the individual and whether the individual chooses to hold the property in their name or a local or offshore entity. � • Currently, both Japanese and foreign banks are becoming more proactive in the lending market, allowing more options for investors interested in Japanese real estate. � � YOUR � � LOGO

Investing ¡In ¡Japanese ¡Real ¡Estate Tax ¡planning ¡& ¡Practical ¡Considerations Overview • Because Japan's tax rates are among the highest in the world, it is imperative that the correct structure is implemented to ensure tax efficiency. � • Hybrid investment structures, such as Tokumei Kumiai (TK), are available to investors who provide for planning opportunities. A TK is most often used by investors who want to reduce their onshore tax liability and simplify their tax liability / compliance on any income distributions to non-resident investors. � • Japan has experienced a wave of foreign investment due to low interest rates, reduction of property taxes, and availability of investments properties. � � � � � YOUR LOGO �