Japan interest rate normalization is narrowing the window for yen-denominated real estate. The Bank of Japan raised rates in 2025 and signaled further hikes. Each 0.25% rise impacts variable-rate investment loans and cap rates on financed properties.
For USD-based investors, the yen 30-year low still provides a buffer — the currency effect outweighs the rate effect for now. But the direction is clear: the window where you can borrow cheap in yen and buy property with a negative real interest rate won last forever.