China, Japan Try to Tamp Down Maritime Tensions

[Aepsilons]

Chinese invest 36b yen in Japanese real estate
By Li Jingrong
China.org.cn, January 26, 2015

Chinese private capital has become a major force in Japan's real estate sector, with investment reaching 36 billion yen (US$304 million) last year, Xinhua reported on Thursday.

Following an active influx of overseas capital, the Japanese real estate market has enjoyed rapid development. International investors, including those from China, have shown keen interest in the sector.

Statistics from an institute on the future of urban areas under Japan's Mizuho Trust & Banking Co., Ltd. show that in 2014, more than US$10 billion in foreign capital poured into the property market, about a fifth of the country's total real estate volume. The focus has been on high-grade properties, particularly in the downtown areas of Tokyo.

The U.S. group Blackstone spent 190 billion yen (US$1.6 billion) last year on more than 5,000 residential buildings in the Japanese capital. China's Fosun Group invested 70 billion yen (US$590 million) in a 25-storey office building located near Shinagawa Station in one of Tokyo's inner city business districts.

Investment funds from the United States, France and Germany also bought office buildings and comprehensive commercial facilities in Tokyo's Shinagawa, Shinjuku and Nakano wards.

An interesting trend is that an increasing numbers of individuals are also actively investing in Japanese property, including many Chinese wealthy people. Japan's Real Estate Institute predicted that in the past year, at least 36 billion yen (US$300 million) of Chinese private capital poured into the real estate market. As a result, many Japanese real estate companies have increased their Chinese-speaking staff.

One of the reasons for the trend is that investors think the real estate market in Japan's large cities has considerable potential for growth.

In recent years, average land prices have declined sharply across the nation, although some areas are beginning to rebound. Last year, prices of commercial and residential land in Tokyo, Nagoya and Osaka started to rise again, with the vacancy rate of office buildings in downtown Tokyo dropping to five percent, and residential housing prices rebounding.

However, the overall price of Japanese real estate is still low. Currently the corresponding prices for most ordinary residential houses in Tokyo are less than or equal to prices in Beijing and Shanghai.

Tokyo will host the 2020 Olympic Games. Investors believe it is likely that Tokyo's real estate will undergo a major revaluation before the event.

In addition, Japan's real estate rental ratio is reasonable, and the property investment return rate is holding steady at 6-8 percent. All these factors have helped stimulate overseas interest.

There are no restrictions on foreign investment in the Japanese real estate sector. In addition, the government has worked hard to increase the liquidity of the market by progressively lowering capital gains, registration and license taxes on real estate.

Day by day I am am truly impressed by the amount of bilateral development. East Asia is truly becoming integrated ...!

 

[anilindia]

Good for both countries and for Asia.

 

[Yizhi]

China, Japan agree to launch maritime, aerial crisis management mechanism
2015-01-29

Yang Yujun, spokesman of the Ministry of National Defense (MND) of the People's Republic of China, answers questions on this year's military exercises plan, anti-corruption campaign, China-Japan talks on maritime crisis management mechanism and other issues at a regular press conference in Beijing, capital of China, Jan. 29, 2015. This is the first regular press conference in 2015 of the MND. (Xinhua/Mei Changwei)

BEIJING, Jan. 29 (Xinhua) -- Chinese Defense Ministry said on Thursday that China and Japan have agreed to launch a maritime and aerial crisis management mechanism at an early date.

Defense Ministry spokesperson Yang Yujun told a monthly press briefing that a consensus had been reached on various aspects in talks in Tokyo this month, including reaffirming previous agreements on the goal, constitution, operation and technical issues of the mechanism; agreeing to change the name of maritime crisis management mechanism to maritime and aerial crisis management mechanism so as to better conduct consultations on maritime and aerial issues.

"The two sides also agreed that conditions for launching the mechanism are met and agreed to launch it as soon as possible," said Yang.

Besides, both sides have reached consensus on telecommunications norms, he said.

The defense ministries of China and Japan held the fourth round of talks in Tokyo on maritime crisis management mechanism on Jan. 12.

The mechanism of high-level consultations on maritime affairs between the two countries was launched in 2012. After three rounds of successful talks, the talks were suspended after the Japanese government's so-called "nationalization" of China's Diaoyu Islands in the East China Sea in September 2012.

"Defense relations are an important and sensitive part of bilateral relations," said Yang, calling on Japan to abide by its commitment made previously including a four-point agreement reached in November and take substantial measures to improve bilateral relations.

China and Japan signed a four-point principled agreement to improve bilateral ties in November in Beijing, in which they agreed to resume political, diplomatic and security dialogues while acknowledging different positions on the Diaoyu Islands.