Japan is an archipelago of over 400 islands in the Pacific Ocean and lies to the east of China, Korea and Russia. The capital, Tokyo, is on the island of Honshu along the coast of Tokyo Bay in the southeast.

What's so special about it?

For the last 15 years property prices in Japan were in freefall. While in rural areas and at a national level prices are still in a slump, in the six biggest cities prices are on the way back up and, according to Global Property Guide, in 2006 prices grew by 4.1% and by 7.75% in first half of 2007.

Tokyo is Japan's biggest city but it is also a global megacity and accounts for some remarkable statistics. UN research shows it is the most populous metropolitan area in the world, it has the largest GDP of any city and, after 14 years, it was only recently knocked off the top of the Economist Intelligence Unit's list of the most expensive cities.

Best kept secrets In terms of world rankings, Japan is number one for mathematical literacy, electrical generation, spirit consumption and car production. Surprisingly Japan is also a large skiing nation, with over 1,500 ski resorts.

Who lives here?

While many Japanese celebrities live in Tokyo, many are not known in the west, except for Yoko Ono. Due to its commercial prowess many film premiers are held in Tokyo, recently Spiderman 3 and the latest Harry Potter movie.

What's the property market like?

Ivan Doherty, who works in the Tokyo office of Irish finance company IFG Group, believes the property market is becoming very attractive for foreign buyers as there is great value to be had with the Japanese yen now 40% weaker than the euro and, although they are set to rise in the next six months, Bank of Japan interest rates are still only 0.5%. Anne Lanigan, director of Enterprise Ireland's office in Tokyo says, "Traditionally it has been difficult for foreigners to get mortgages in Japan but in the last few years this has changed and there are several banks who will organise this now."

How do you go about buying property?

Useful resources are the Tokyo newspaper with English sections, which include Asahi Shimbun, the Japan Times and Yomiuri Shimbun. There are no restrictions on foreigners buying property but, because properties are sold so quickly, and to overcome the linguistic and cultural barriers, it is best to hire a local agent to represent you.

These can be sourced through the Real Estate Companies' Association of Japan and charge about 3% plus YEN60,000 ( 355).

A survey of the property may be carried out and an offer can be made but is not legally binding. The agent will draft a Juyoujikou- Setsumeisho, or a property disclosure statement. When the deal is completed a 10% deposit is paid and the title transferred once stamps are obtained, fees paid and the title registered. Registration can take around two weeks.

You can also appoint a scrivener to set up a special-purpose vehicle (SPV) to register the property title on your behalf if you cannot be there. This takes four to six weeks. Doherty says this process is often better suited to institutional investors or individuals wishing to invest 2-3m. Purchase costs on new builds are 4% and 7% on secondhand properties.

Where are the best places to buy?

Lanigan says that as Japan has a decreasing population it is expected people will move closer to the city. For this reason it is important to buy in the centre to make sure the value of the land will not decrease and the golden rule is to buy inside Yamate Dori (a ring road around Tokyo) even though prices decrease as you move outside this.

Trains are vital and any property should be within five minutes' walk of a station.

What's the rental market like?

Occupancy rates in central Tokyo are very high. Gross rental yields are about 5-6% for old buildings and 3.5-4.5% for new builds. In the city centre it rises to about 6.2%. At present Global Property Guide data shows average monthly rents in the city centre range from 1,692 for a 50sq m apartment to 5,015 for a 150sq m apartment. Rents decrease the further the property is from a train station. Rental management fees are high.

What's the resell market like?

Buildings typically have a short life span in Tokyo. After about 10 years it is common to completely refurbish a property and after 20 or 30 years to demolish and rebuild. The secondhand market is not as liquid as in Ireland but developers may be keen to buy them in order to refurbish them.

What type of property is available?

Except for ski apartments, off-plan properties are rarely advertised to nonresidents as local demand is so high, so an agent on the ground is essential. Houses are the best buy as then you control the land; for an apartment you need the agreement of 85% of the building's owners before it can be knocked and rebuilt.

Average property prices?

Global Property Guide data shows the average price of apartments in the centre range from 344,719 for a 50sq m unit to 1,279,526 for 150sq m.

What are the tax breaks with Ireland?

Japan has a double taxation agreement with Ireland, but all profits should be reported to the Irish Revenue. Tax allowances are available depending on the size and age of the building and properties held for over 10 years can avail of allowances when sold.

FAST FACTS
Getting there: Air France and Air China fly from Dublin
Area: 2,187.08sq km
Population: 12,570,000
Currency: Japanese Yen ( 1.00 = YEN168.661)
Weather: Pacific climate with temperatures ranging from 4degreesC to 27degreesC
Transport: Tokyo has two main airports and is the transport hub for Japan. Rail transport is as important in Tokyo as roads are in the west and the extensive network of trains, metros, trams and monorails are fast, clean and efficient . . . although often crowded. Expressways and ferries link the city to other urban areas and islands. Taxis are also common in the city.
Going out: As a megacity with 23 different areas it is very diverse, from the neon blare of Akihabara and youth culture in Shibuya to the Imperial gardens of Chiyoda and temples of Asakusa. In the city centre is the Imperial Palace, nightclub districts of Roppongi, Kabukicho and Ebisu, parks and museums at Meguro and Tokyo's main sumo arena.
Eating out: Sushi originates from Tokyo and is best bought from the famous markets in Tsukiji. There are thousands of restaurants catering for every worldwide pallet and fastfood outlets are plentiful too . . . Japan has the second-highest number of McDonalds restaurants in the world, even though it has very low rates of obesity and heart disease.
Shopping: Tokyo is a mecca for electronics, fashion, antique furniture and almost anything for sale in the world. Payment is usually by cash. Akihabara is best for electronic stores, Shibuya and Harajuku for fashion and Seibu and Tobu are some of the largest department stores in the world.

USEFUL CONTACTS

Embassy of Ireland in Tokyo: 00813-3263 0695; www. embassy-avenue. jp/ireland/index. htm
Japanese embassy in Dublin: 01-202 8300; protocol@embip. ie
Asahi Shimbun: www. asahi. com/english/
Japan Times: www. japantimes. co. jp
Yomiuri Shimbun: www. yomiuri. co. jp
Real Estate Companies' Association of Japan (RECAJ): 00813-3581 9421; www. fdk. or. jp
Financing: IFG Asia; info@ifgasiamortgages. com
The Global Property Guide: www. globalpropertyguide. com
The Economist (Japan): www. economist. com/countries/Japan/