In the second quarter of this year, Japan's real estate investment surpassed 1 trillion yen, representing a 17% increase year-on-year. Compared to previous years over the same period, this marks the first time in 19 years that investment has broken the "1 trillion yen" mark. Among this, approximately 36% came from overseas capital, surging 20% year-on-year, reflecting exceptionally high international interest in the Japanese market.

As we enter the second half of 2026, various institutions have successively released their performance scorecards for regional investment markets. As expected, Japanese real estate continues to perform exceptionally well. According to data from CBRE, commercial real estate investment in Japan hit a record high in the first quarter of this year, with investors from all over the world flocking to the country. Among them, commercial real estate investment increased by 2.0% year-on-year, surpassing 2 trillion yen and setting an all-time high for the same period.

The Japanese Diet recently passed the vice-capital bill. The vice-capital plan will focus on three major pillars: enhancing industrial competitiveness to establish an economic center; developing transportation networks and urban infrastructure; and setting up bases for national organs and special corporate legal entities. Additionally, there are plans to provide tax incentives for companies relocating their headquarters from Tokyo to the vice-capital. Currently, cities such as Osaka, Nagoya, Fukuoka, and Sapporo have expressed interest in applying. Among them, Osaka has the strongest momentum to become the vice-capital, with reports indicating that the ruling party intends to promote Osaka Prefecture to stand on equal footing with Tokyo, which will simultaneously help resolve the issue of power being overly concentrated in Tokyo.

I am thrilled to announce that FMI's PIKA PIKA service has officially launched. What is PIKA PIKA? It is a Japanese onomatopoeia meaning "sparkling clean"—much like the Cantonese expression "lap lap ling" (立立令)—used to describe something clean, shiny, and brand new. I personally came up with this company name. When we initially decided to expand our cleaning operations under our vacation rental management arm, this catchy and memorable Japanese term popped into my mind, and that is how PIKA PIKA got its name.

In the latest "Global Liveability Index 2026" released by the Economist Intelligence Unit (EIU), both Osaka and Japan's Tokyo achieved full scores in key evaluation categories, including quality healthcare systems, comprehensive education frameworks, and exceptional social stability. They ranked 7th and 10th overall, respectively, making them the only two Asian cities to break into the top ten. This marks the eighth consecutive year that Osaka has secured a spot in the top ten.

Last week, FMI held two seminars on investing in Japanese real estate in Taiwan—one in Hsinchu and another at our Taichung office. The main theme of these seminars focused on mortgage approvals for purchasing Japanese property. Why focus specifically on loans? For a long time, there have been various misconceptions in the market regarding buying property in Japan, the most common being that you cannot secure a mortgage for Japanese real estate. This rumor has deterred many investors over the years, but the reality is that FMI's buyers can not only apply for mortgages but also have a strong track record of successful approvals. When loans are rejected, the reasons are frequently personal rather than standard practices in the Japanese real estate industry.