W
ealthy Koreans are flocking to Japan's real estate market, driven by the weak yen and Seoul's strict regulations. The persistent depreciation of the Japanese currency has made properties in Tokyo and other metropolitan areas more affordable for Korean buyers, who can either bring cash from Korea or secure loans from Japanese banks.

    According to data compiled by the Ministry of Economy and Finance, Korean nationals remitted a record $39.2 million to Japan for property purchases last year, nearly tripling from 2023's $13.1 million. This figure accounted for 9.4% of total overseas real estate payments made in 2024.

    Real estate experts attribute the surge in demand to the stark contrast between Japan and Korea's markets. "In Seoul, buying a decent apartment requires over 1 billion won," said an expert on condition of anonymity. "But in Tokyo, you can find similar units for less than 1 billion won." The weak yen has also made Japanese properties more lucrative for Korean investors.

    The value of the yen remains low against the won, with 100 yen trading at around 900-800 won in recent months. This trend is expected to continue, sustaining real estate shopping in Japan. "Wealthy Koreans are looking for profitable assets at affordable prices," said Kim Woong, head of Hana Bank's Estate Investment Center.

    However, market observers caution that Korean buyers should be aware of the risks associated with properties in Japan, including distance and high capital gains tax.