Most of my (meagre) assets are currently in sterling cash. I'm pretty pessimistic about sterling's prospects over the next couple of years. I suspect that it will tank against both the dollar and the Euro, but more certain that it will tank against asian currencies. Given the depressed state of Japanese real estate, I'm contemplating putting money to work there, maybe via a REIT.

Does anyone have a view on the prospects for Japanese property - or know any good research resources (other than the "come and spend huge amounts of money on a short term corporate let" websites...)

ta

I wouldn't and don't touch it even though I have Japanese Yen. Every year more and offices, flats and houses are built but the population is due to fall rapidly in the coming years due to the very low birthrate. There is also the all too real possibility of major earthquakes, especially in the Kanto (Tokyo) area. Even if your investments survive, rebuilding tends the create a glut, old single storey buildings are replaced by multi-storey blocks within a fairly short time.

I'm also not confident about the Pound and expect it to fall ripidly as the government's dire financial state becomes more apparent....but if people start going bankrupt 'left ,right and centre' then even a few thousand will make you feel wealthy.

alot of Asia property fund managers are bullish at Japan commerical real estate because they feel it is greatly undervalued and high potential of capital gain....

Agree. Yields are up 26% in commercial Class A and B properties within the 5 central wards. Positive cash flows are astounding to cost of leverage. And asset in commercial property in second tier cities couldn't be at any better prices. Buy at the bottom in a provable market and wait ten years. This is a self paying investment...

As far as earthquakes, insurance and architecture takes care of this does it not?

I don't think you can buy earthquake insurance but if it's available it would be prohibitively expensive. Indeed modern buildings built since the 1995 Kobe earthquake are unlikely to fall over but remedial damage can be expensive. A friend living in a block of flats on Rokko Island Kobe had a bill for 15,000 Pounds just to pay for cracks etc. I think his cleaning bill was a bit higher that month too.

Yes commercial property is cheap but it's cheap for a reason. Business is bad and getting worse, as in this country, inflation of food and fuel but wages, especially for the young, are falling. There may be a bottom but Japan has further to fall I think. "26%"...!? I'm quite happy with my 0.2% thank you very much, I guess that means that I'm as thick as the average Japanese....

Another dire warning; in the U.K. our estate agents are warm and cuddly. In Japan, anything to do with property is likely to involve the Yakuza on some level....I sh!t you not. I'm speaking from experience here. And there's nothing they like better than to rip off dumb gaijin.

....almost forgot. The place to pick up stuff really cheap is down at your local court house (saiban sho) Plenty of land, houses, commercial, even large apartment blocks....all taken from some bankrupt sod and all going for a fraction of retail.