Precisely because of its ideal living environment, Japan attracts a massive influx of foreigners to work and live every year. By the end of 2025, the foreign resident population in Japan reached a record high of 4.12 million, representing a year-on-year increase of 9.5%—marking the fourth consecutive year this figure has hit a record high. Facing a domestic labor shortage, the "Specified Skilled Worker" visa introduced by the Japanese government in 2019 has significantly driven up the foreign population, with the relevant headcount soaring by 37.2% year-on-year to over 390,000. Broken down by city, approximately 801,000 foreign nationals reside in Tokyo, while about 375,000 live in Osaka.

Demystifying the Four One-Time Taxes

Benefiting from the recovery of the tourism industry and the expansion of the foreign labor market, rental market demand in Japan's core cities remains robust. Particularly in major metropolitan areas like Tokyo and Osaka, where population density is more concentrated, residential projects are able to maintain high occupancy rates and steady yield returns, making them the preferred asset allocation choice for many overseas funds and individual investors. Investing in the property market is a highly specialized discipline; beyond property prices, locations, architectural specifications, and earthquake-resistant standards, investors frequently overlook one critical expense—"one-time taxes and fees."

Taking the purchase of a brand-new, newly built property in Japan as an example, investors must budget for four major one-time taxes: Real Estate Acquisition Tax, Registration and License Tax, Stamp Duty, and Consumption Tax. First is the Real Estate Acquisition Tax levied by local governments. Although the standard tax rate is 4% of the assessed value, residential buildings and land enjoy preferential deductions and exemptions, bringing the actual effective tax down to roughly 0.5% to 0.8% of the purchase price. Second is the national "Registration and License Tax" paid upon property title registration. Calculated based on the fixed asset tax evaluation value, the tax rates for land and buildings are 1.5% and 0.4%, respectively. As for Stamp Duty, it is levied on a tiered scale based on the contract amount; since amounts under 10,000 yen are exempt, the cost is minimal for typical property transactions. Finally, there is a 10% Consumption Tax. However, by law, land is tax-exempt, meaning consumption tax applies only to the building portion. Furthermore, the listed prices of the vast majority of brand-new properties in Japan already include consumption tax, so buyers do not need to pay any extra out-of-pocket amount.

Combining all these taxes and fees, the actual one-time taxes and fees that buyers need to pay additionally when purchasing a new Japanese property account for only about 1.0% to 1.5% of the property price. When factoring in judicial scrivener fees, insurance, and other miscellaneous expenses, the total preliminary budget is recommended to be reserved at around 2.5%, keeping the tax costs relatively clear and transparent.

Namba Prime Location Delivers Rental Yields Up to 11%

Many Hong Kong residents are accustomed to Hong Kong's property market structure where overall rents are consistently high. Even when choosing new developments in more remote areas like Northwest New Territories, the huge pent-up demand keeps the rental market massive, with many tenants willing to endure longer commutes in exchange for living space. However, Osaka's market conditions are entirely different. Osaka's overall property prices and rents are not exceptionally high to begin with, so most tenants prefer to live downtown; rental listings located too far away from the city center generally see very little demand.

Located in Naniwa Ward, the brand-new development The Peak Namba Minami Reserve possesses precisely the advantages mentioned above. Surrounded by over a hundred restaurants and shops, it is situated in a highly popular neighborhood favored by tourists and office workers alike. It is only a 5-minute walk from the property to the Daikokucho subway station, which boasts a "dual-line subway" advantage offering direct access to core commercial hubs such as Shinsaibashi, Umeda, and Tennoji. The two-year rental yield can reach up to 11%, making it an exceptionally high-yielding project in the current market.