Already there are signs that the new Japanese government is looking at policies to stimulate economic activity. The Japanese government has bureaucrats around the world which look at public policy ideas in various countries. The new Japanese government appears to be taking several policy ideas from Australia (not necessarily the originator):
1. Immigration - The LDP could not sell the idea of increased immigration, though the current government is considering such a move.
2. Cash incentives for new parents - Australia had the $5000 baby bonus
The aging of the Japanese population and declining population thanks to a higher death rate than birth rate is the reason for the policy. This of course is good news for property buyers; particularly property buyers in the fringe areas of the major cities. We know immigrants prefer the larger cities (say over 2mil population) for several reasons:
1. Greater support from fellow country people
2. The availability of services for their culture, e.g. Local government info in multiple languages
3. Greater job potential
4. Less discrimination
5. Greater availability of accommodation
The outer areas become more popular because of the high cost of land in inner city areas. Many Asian immigrants will of course be accustomed to living in small apartments....but Japanese 'boxes'? One can expect property near outer satellite city stations to attract the greater share of interest.
This policy will of course take time to unfold. Japan is currently subdued like the rest of the globe, but expect other stimulus coming out of the recession. Recently the outer suburbs have experienced population losses as people were moving into apartments in the inner city. Its probable that foreigners would offset this trend to some extent in years to come.
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Andrew Sheldon www.sheldonthinks.com
1. Immigration - The LDP could not sell the idea of increased immigration, though the current government is considering such a move.
2. Cash incentives for new parents - Australia had the $5000 baby bonus
The aging of the Japanese population and declining population thanks to a higher death rate than birth rate is the reason for the policy. This of course is good news for property buyers; particularly property buyers in the fringe areas of the major cities. We know immigrants prefer the larger cities (say over 2mil population) for several reasons:
1. Greater support from fellow country people
2. The availability of services for their culture, e.g. Local government info in multiple languages
3. Greater job potential
4. Less discrimination
5. Greater availability of accommodation
The outer areas become more popular because of the high cost of land in inner city areas. Many Asian immigrants will of course be accustomed to living in small apartments....but Japanese 'boxes'? One can expect property near outer satellite city stations to attract the greater share of interest.
This policy will of course take time to unfold. Japan is currently subdued like the rest of the globe, but expect other stimulus coming out of the recession. Recently the outer suburbs have experienced population losses as people were moving into apartments in the inner city. Its probable that foreigners would offset this trend to some extent in years to come.
------------------------------------------------
Andrew Sheldon www.sheldonthinks.com
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