Earlier, the National Tax Agency of Japan announced that commercial land prices in Osaka grew by 8.5% year-on-year, with the strongest surge concentrated in the Shinsaibashi-to-Namba area, where land prices rose by 25% year-on-year—outperforming Umeda for the first time since 2020. Recently, the most talked-about transaction was Mitsui Fudosan and its subsidiary jointly splashing out 43.1 billion yen to acquire Shinsaibashi OPA. Speaking of OPA, I believe most people are familiar with it. In the 1990s, it was regarded as a hub of trendy youth culture. Although its momentum had faded in recent years leading to its official closure early this year, it was quickly snapped up, with transactions completed in phases starting in June. In fact, properties located in such prime locations never struggle to find buyers; instead, buyers have to worry about how many potential competitors are out there, because whenever property hits the market, consortia are quick to step in with high bids. This reflects investors' full confidence in the prospects of Japan's retail and tourism consumption.

Leveraging Tourism Appeal

Beginning last month, the Japanese government significantly adjusted visa fees for foreign nationals: single-entry visas were raised from 3,000 yen to 15,000 yen, and multiple-entry visas from 6,000 yen to 30,000 yen, representing a fivefold increase. However, travelers from places like Hong Kong, Taiwan, and South Korea who enjoy short-term tourist visa exemptions remain unaffected. Yet, you can ask yourself: even with a visa fee, would you stop going to Japan? With the Japanese yen remaining persistently weak, the appeal of favorable exchange rates certainly outweighs a mere couple of hundred Hong Kong dollars in visa fees.

Results from the transnational consumer market survey Japan Brand Survey show that over 50% of surveyed travelers wish to visit Japan again, ranking first among the 20 surveyed markets. This demonstrates its enduring tourism appeal, giving the Japanese government full confidence that increasing visa fees will not negatively impact the tourism industry.

Striving for Vice-Capital Status

Japan has experienced an unprecedented tourism boom over the past two years, welcoming over 36 million visitors in 2024 and further breaking the 42-million mark last year—setting record highs for two consecutive years. As the most crucial gateway to the Kansai region, land prices in Osaka have naturally risen accordingly. Recently, there has been a heated debate in Japan regarding the competition for the vice-capital status. Alongside Osaka, which has already stated its intention to apply, Aichi Prefecture and Fukuoka Prefecture also held press conferences immediately to announce their bids.

In my view, Osaka leads by a wide margin. When talking about major Kansai cities, people naturally think of Osaka first. Primarily, Kansai International Airport is closer to Osaka; whether you are heading to Kyoto, Nagoya, or Kobe, Osaka is a mandatory transit point. Furthermore, the Osaka government is relatively open-minded and particularly keen on doing business and generating revenue. Look at the World Expo held in Osaka, and the casino coming to Osaka as well. The more open a city is and the more willing it is to welcome foreigners, the easier it is to attract investors. This is why I chose Osaka as my base. If Osaka is successfully designated as the vice-capital, it will not only attract government agencies and corporate headquarters but also accelerate the influx of international capital. At that point, the local real estate market will no longer rely solely on tourism, retail, and rentals, but will evolve into a long-term demand market with limitless potential.