The demand for condos in Singapore remains consistently high due to a multitude of factors, with one of the primary reasons being the limited availability of land. As a small island nation with a rapidly expanding population, Singapore faces challenges in finding enough land for development. This has resulted in strict land use policies and a highly competitive real estate market, where property prices are constantly on the rise. As a result, investing in real estate has become an attractive opportunity, especially in the condo market, with the promise of substantial capital appreciation. Keeping up with this trend, there has been a surge in New Condo Launches, providing more options for interested investors.
Osaka, Japan’s second-largest city, welcomed a new boutique bed and breakfast (B&B) property over the weekend of July 12 and 13. Metro City Osaka, developed, managed, and operated by Japanese company TY Properties Development, comprises a total of 60 units and has already seen a strong response from Singapore buyers, with over 30 units being sold by 3pm on Sunday.
Ideally located in the heart of Naniwa Ward, Metro City Osaka features nine storeys and boasts 59 B&B-style residential units along with one retail shop. It is conveniently situated just a two-minute walk from JR Imamiya Station, a seven-minute walk from Daikokucho Station, and one stop away from JR Namba. Popular attractions like Shinsaibashi, Kuromon Market, American Village, and several large department stores are also within close proximity, making it the perfect place for tourists to base themselves during their stay in Osaka. A variety of supermarkets and daily conveniences are also conveniently located nearby.
The residential units at Metro City Osaka are diverse, ranging from cozy studio apartments of 15 to 21 sq m (161.5 to 226 sq ft) to two-bedroom units of around 32 sq m (344 sq ft). The property has been fully refurbished by TY Properties, who also manage the guesthouse, and is offered as a turnkey investment opportunity.
For those interested in investing in overseas properties, Metro City Osaka is definitely worth considering. Before its Singapore launch, the project was showcased in Kuala Lumpur over the weekend of April 26 and 27, and it was also previously launched in Hong Kong by TY Properties.
Singaporean buyers made up approximately 60% of buyers, with Hong Kong buyers comprising 37% and Malaysians making up the remaining 3%. One Singaporean investor even purchased the sole retail unit available.
All residential units were sold fully furnished at affordable prices ranging from $130,000 to $150,000, or around $700 per square foot. Currently, the property enjoys a high average occupancy rate of 70-80%.
Savills Singapore’s senior director and head of international residential sales, Ruben Koh, estimates that investors can expect net yields of 8-12%, with payouts available on either a quarterly, half-yearly, or annual basis.
Koh shares that the strong interest in Metro City Osaka can be attributed to Osaka’s thriving tourism industry, the ongoing World Expo 2025, and the unique appeal of a fully managed B&B model. He adds that many buyers saw it as a timely and low-risk opportunity to enter Japan’s hospitality market.
Osaka is currently hosting the World Expo 2025 from April 13 to October 13, which is expected to attract a staggering 28 million visitors from over 160 countries. Just last year, Osaka welcomed nearly 14.6 million visitors, and the government is aiming to attract over 16 million arrivals in 2025.
With the demand for short-stay accommodations at an all-time high, Koh predicts that Metro City Osaka will continue to perform well. Savills Research shows that Osaka’s central wards have experienced robust rental growth with a compound annual growth rate (CAGR) of 2.6% since 2019. This is coupled with rising condominium prices, limited supply, and growing foreign demand. These factors are further bolstered by long-term infrastructure projects such as the World Expo and the upcoming integrated resort development.
Together, these factors highlight the appeal of Metro City Osaka as a fully managed, investment-grade B&B asset in a prime tourist location, says Savills.