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Tokyo has the potential to become a global financial city. This special issue features interviews with the likes of Tokyo Governor Yuriko Koike and FinCity Tokyo’s general manager Kazuhiko Yoshimatsu.
Collaboration with Tokyo's artisans offers business opportunities and fosters cross-cultural connections. Artisans are open to exploring new techniques and collaborating with entrepreneurs to create products that resonate with a wide audience.
1. Tokyo’s Artisan Scene
Tokyo’s artisan scene beckons, offering a tapestry of experiences for individuals seeking to connect, collaborate and appreciate the timeless beauty of traditional Japanese craftsmanship. Whether one’s passion lies in shamisen craftsmanship, kimono dyeing or woodworking, the city’s artisans are open to embarking on collaborative journeys that push their craft’s boundaries. Such explorations breathe new life into ancient techniques, resulting in innovative creations that resonate with today’s consumers.
These collaborations also present a unique opportunity to promote Japan’s cultural heritage, with a global audience increasingly curious about its rich traditions and artistic expressions. This is particularly the case in Tokyo, where the city’s artisanal legacy is on display across its diverse urban districts.
The city’s artisanal scene is gaining momentum, with more and more visitors seeking out local art galleries that are off the beaten track. In addition to established names like SCAI the Bathhouse and 21_21 Design Sight, there are a number of small independent workshops and boutiques dotted throughout the city. These spaces showcase everything from the bauble-encrusted deer of Kyoto-based artist Kohei Nawa to the minimal bold sculptures of London-based artist Anish Kapoor. 江東区 不動産売却
Another exciting development is the growth of Tokyo Gendai, a new generation of young collectors who are drawn to the city’s storied history as an international hub of fine art. These collectors are eager to explore the city’s burgeoning contemporary arts hive, which features museums, galleries, studios, and creative spaces.
As Japan’s art market evolves, the country is becoming a more attractive destination for investors. This is evident by the increasing number of international investors buying real estate in the city’s most prominent art district. As the country continues to attract foreign investment, it’s likely that more and more international galleries will establish outposts in the city, further cementing Tokyo’s position as a global art destination.
To further bolster the city’s art reputation, Tokyo Gendai recently launched M5 Gallery, a new platform that aims to draw international galleries that do not have a permanent presence in Japan. While this is a welcome development, the city still has some work to do when it comes to building its local art infrastructure. In particular, it must create a more collaborative environment to attract and support a younger generation of collectors.
2. AI Legalese Decoder
Legalese Decoder is an innovative tool that uses artificial intelligence to break down complex legal language into plain language. This tool is designed to help individuals read and interpret legal documents without the need for a lawyer, providing a cost-effective and efficient solution. Legalese Decoder is able to quickly decode legal documents by analyzing the content of the document, identifying key terms and concepts, and providing a plain-language explanation. This allows users to understand legal documents and make informed decisions.
Legal documents are often filled with complex, complicated jargon and terminology that can be difficult to comprehend. This can be particularly stressful for individuals who are not well-versed in legal matters. AI Legalese Decoder can help to simplify legal documents and make them easier to read, reducing stress and facilitating clear communication.
The tool can also help individuals make more informed decisions regarding their investments and real estate purchases. For example, it can help individuals understand the terms and conditions of investment loans. This can help them avoid potential pitfalls, such as high interest rates or unfavorable terms and conditions. It can also help individuals to better evaluate the risks of investing in property, ensuring that they are making a sound financial decision.
Moreover, the tool can be used by small business owners and entrepreneurs to navigate complex legal documents without the need for an attorney. This can save time and money and minimize the risk of misunderstandings or disputes.
The tool can be a valuable resource for businesses of all sizes, from small startups to large multinationals. It can be used at the pre-signature stage to determine whether a company is legally able to sign everyday documents (like NDAs, service agreements, or SaaS contracts). This can ensure that businesses are in compliance with regulatory requirements and other obligations. The tool can also be used during the post-signature phase to identify contract data and uncover issues, such as potential violations of IFRS or GDPR compliance rules.
3. Floating Rates
The interest rate on a floating-rate mortgage can change over the life of the loan, as market conditions allow. It is usually tied to a benchmark rate, such as the Secured Overnight Financing Rate (SOFR), which replaced the London Interbank Offered Rate (LIBOR).
For borrowers, this type of loan offers flexibility and potential savings. Floating rates start out lower than fixed-rate loans, offering borrowers the chance to save money. If market interest rates decrease over time, a borrower’s monthly payments will also be reduced. The lowered rate of interest will help them pay off their loan sooner, which can boost their financial health and reduce the total amount paid on their home loan.
Floating rates can also be beneficial to lenders. If market rates rise, the lender’s cost of capital will be higher than a fixed-rate loan and may help them make more profit. The risk of rising rates can also be lessened by purchasing an interest-rate cap or swap.
As a result, a floating-rate loan’s appeal often peaks when interest rates are rising. However, it is important to note that the risk of future losses is always present.
The uncertainty of a floating-rate loan’s interest-rate fluctuation can make it difficult for some to budget and plan for the future. For example, if interest rates increase, the borrower will have to pay more on their monthly EMI. The unpredictability of floating rates can also cause borrowers to spend more than they intended, which can put them at risk for default.
In Japan, this trend has been exacerbated by low graduate employment rates, which have contributed to record-high household debt levels and the widening of the gender gap in university enrolment. However, the Bank of Japan’s recent announcement that it might let its bond yield target rise a little could signal that these trends might be turning around. It would be a huge shift in the country’s ultra-easy money policy, but it may ultimately be necessary to revive the economy and improve labor market prospects for Japan’s young people. It would likely also ripple globally, especially given how sensitive markets have become to any hint of a policy shift.
4. Uncertainty
TOKYO—When Japan’s economy recovered in 2018, consumer spending grew, and restaurants and malls bustled. But a global economy that has slowed since the coronavirus pandemic began is weighing on the Japanese market.
Whether that will change soon remains unclear. Amid growing protectionism, Tokyo’s business community is worried.
As for the city’s long-term prospects, Ms. Devalier said, “we’re a little more cautious than some people are.” The short-term outlook is bright, she added, but the longer-term picture is muddled by uncertainty in markets around the world and sluggish global growth.
Japan’s government has a strategy to tackle those uncertainties. To accelerate its rollout of modernized urban infrastructure, it has merged its multi-trillion-yen funds into a triad, called TMG 2050: Safe City, Smart City and Diverse City. The goals are to ensure safety and resilience in the face of natural disasters, a rapidly ageing population and climate change.
The investment plan includes a new JPY 1 trillion budget, separate from its annual budgets, for the next five years dedicated to advancing these three initiatives. One of those is the Safe City initiative, which is focused on making the country’s cities and towns safer from earthquakes, tsunamis and fires through the construction of flood defence systems and disaster-resistant buildings.
Another is the Smart City initiative, which aims to transform Japan into a global leader in artificial intelligence and big data. This involves developing advanced computing and analytics to enhance the quality of city services such as transport, energy and healthcare.
The third pillar is the Diverse City initiative, which focuses on building more diverse and open communities. Efforts include promoting foreign language education and creating opportunities for immigrants to integrate into the workforce.
The triad approach is an example of the holistic thinking that underpins TMG’s policies. It recognizes that economic and ecosystem disruptions are intertwined, and that well-targeted preparedness investments will improve a city’s resilience. This approach sets Tokyo apart from other cities tackling the same challenges, and offers a valuable benchmark for others to emulate. We look forward to sharing more insights in future editions of The PM Real Estate Advantage.
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