The Exodus of China’s Wealthy to Japan

TOKYO—Last year, China native Tomo Hayashi, the owner of a metals-trading firm, moved to Tokyo. He quickly adopted a Japanese name, spent the equivalent of about $650,000 on a luxury waterfront condo and, in March, brought his family to join him.

The 45-year-old, whose two boys just started in a Japanese elementary school, is one of the many wealthy Chinese driving a boom in high-end Tokyo properties and reshaping the city.

Frustrations with Beijing’s autocratic political system, which flared during abrupt pandemic-era lockdowns and have only grown since then, have helped drive the wave, according to real-estate agents and others watching the exodus. China’s economic slowdown and its struggling stock market are also motivating wealthy people to leave the country, they say.

Hayashi, who like many Chinese buyers avoids discussing politics back home, said the move to Tokyo was a challenge. “But we like Japan—food, culture, education and safety,” he said.

Japan isn’t the only haven for Chinese people seeking a Plan B. The U.S., Canada and Singapore are among the countries drawing Chinese migrants, while Hong Kong residents often head to the U.K.

But Japanese cities that are just a few hours’ flight from China are a leading choice for better-off Chinese people. Japan’s real-estate prices are low for foreigners thanks to the weak yen and it is fairly easy for them to purchase property. And the Japanese writing system uses Chinese characters in part, so new arrivals can more easily find their way around.

A report last June by Henley & Partners that tracks worldwide migration trends estimated that a net total of 13,500 high-net-worth Chinese people would migrate overseas during the year, making China the biggest worldwide loser in that category.

Japan had about 822,000 Chinese residents as of the end of last year, up 60,000 from the previous year in the biggest jump in recent years.

Tokyo real-estate broker Osamu Orihara, a naturalised Japanese citizen who was born in China, said his revenue has tripled or quadrupled compared with 2019 before the pandemic, driven in large part by Chinese buyers.

“What is different from the past is there are more who want to get a long-term visa,” Orihara said.

About one-third of the condos on the floor of the 48-story building where Hayashi lives are owned by individuals with Chinese names or companies whose representatives have Chinese names, according to real-estate records. People in the neighbourhood next to Tokyo Bay, a forest of high-rise condominiums, say the typical building has a quarter or more Chinese residents.

Hayashi said a Chinese friend recommended the building. He described the price for the 650-square-foot, two-bedroom unit as reasonable compared with Hong Kong, where he briefly lived after leaving his hometown of Shenzhen, China, and he said the value has already gone up by some 10% to 15%.

The average price for new apartments in central Tokyo was up nearly 40% last year to the equivalent of about $740,000, according to industry figures. The rise was influenced by a flood of new properties appealing to affluent Chinese buyers who are concerned about a steep slump in their own market, market watchers say.

Brokers said Chinese buyers were also eager to buy resort properties. On the northern island of Hokkaido, a town named Furano that is near ski slopes saw residential land prices rise 28% last year, the fastest rate nationwide. Hideyuki Ishii, a local broker, said wealthy Chinese from the mainland, Hong Kong and Singapore were looking for vacation homes.

“A red tsunami is coming with the Chinese flag in tow,” he said.

Chinese people who want to move to Japan and buy an apartment or house generally face two challenges: getting their money into Japan and getting a visa.

China restricts how much its residents can take out of the country, but many Chinese buyers own companies with international operations or have overseas investments. Orihara, the broker, said his clients usually have a bank account in Hong Kong or Singapore from which they can wire money.

One exception, he said, was a client who bought a $190,000 property and mobilised friends and relatives to carry cash little by little over a few months.

As for the visa, people who invest the equivalent of at least $32,000 in a Japanese business that has a permanent office and two or more employees can get a business-management visa.

Other Chinese obtain a visa for what Japan describes as high-level specialists in business, technology or academia. The number of Chinese with the technology version—software engineers and the like—rose 30% between 2019 and 2023 to more than 10,000. Holders can apply for permanent residency in Japan in as little as one year under a point system that favours those with high salaries and advanced degrees.

Tokyo visa consultant Wang Yun, who is originally from China, said most of his clients were Chinese, often business owners or corporate executives in their late 30s to 50s from big cities such as Shanghai or Beijing.

Once settled, many Chinese opt to use a Japanese name, including on legal records in Japan. Some turn to Japanese readings of their name’s Chinese characters, while others pick an entirely new name.

In addition to convenience when dealing with Japanese people, using a Japanese name allows people of Chinese origin to keep a lower profile back home, where they typically still have family. That may be helpful because Chinese authorities tend to frown on the trend of people moving out with their assets.

Popular Chinese social-media platforms such as Weibo , Little Red Book and WeChat buzz with talk of purchasing real estate in Japan. There is some censorship: Citing government regulations, Weibo blocks searches using a hashtag that translates as “Chinese investors are flooding into Tokyo to buy houses,” though users can search for that subject without the hashtag symbol.

Satoyoshi Mizugami, another broker in Tokyo with roots in China, said he hoped to triple his staff to 300 people in five years to handle all the new business from Chinese buyers. A new office building is under construction to accommodate them, he said.

One of Mizugami’s clients is a 42-year-old Chinese man who was educated in the U.K. and started a restaurant business in China and the U.S. He had been living in China since the pandemic and, when he decided to leave, chose Japan because he thought the business environment was better than that of the U.S. Last year, he bought an apartment in central Tokyo, using the money from selling his U.S. business.

This buyer said he was opening a food-trading business in Japan and applying for a visa to move to Japan with his Chinese-American wife and their 4-year-old son.

On a recent morning in Tokyo, Hayashi, the buyer of the waterfront condominium, was busy helping his boys, 9 and 7, learn Japanese and English online and watching them play outside. His wife had briefly returned to China to see their 15-year-old daughter, who is staying to finish high school there.

Hayashi said he intended to stick with Japan for the long haul. He said one attraction was the high level of medical care, which he expects would be valuable when he gets older. He was careful to note that he has been paying Japanese taxes since last year. As a holder of a high-level specialist visa, he said “I’d like to get permanent residency in four or five years.”

PARIS —Paris has long been a byword for luxurious living. The traditional components of the upscale home, from parquet floors to elaborate moldings, have their origins here. Yet settling down in just the right address in this low-rise, high-density city may be the greatest luxury of all.

Tradition reigns supreme in Paris real estate, where certain conditions seem set in stone—the western half of the city, on either side of the Seine, has long been more expensive than the east. But in the fashion world’s capital, parts of the housing market are also subject to shifting fads. In the trendy, hilly northeast, a roving cool factor can send prices in this year’s hip neighborhood rising, while last year’s might seem like a sudden bargain.

This week, with the opening of the Olympic Games and the eyes of the world turned toward Paris, The Wall Street Journal looks at the most expensive and desirable areas in the City of Light.

The Most Expensive Arrondissement: the 6th

Known for historic architecture, elegant apartment houses and bohemian street cred, the 6th Arrondissement is Paris’s answer to Manhattan’s West Village. Like its New York counterpart, the 6th’s starving-artist days are long behind it. But the charm that first wooed notable residents like Gertrude Stein and Jean-Paul Sartre is still largely intact, attracting high-minded tourists and deep-pocketed homeowners who can afford its once-edgy, now serene atmosphere.

Le Breton George V Notaires, a Paris notary with an international clientele, says the 6th consistently holds the title of most expensive arrondissement among Paris’s 20 administrative districts, and 2023 was no exception. Last year, average home prices reached $1,428 a square foot—almost 30% higher than the Paris average of $1,100 a square foot.

According to Meilleurs Agents, the Paris real estate appraisal company, the 6th is also home to three of the city’s five most expensive streets. Rue de Furstemberg, a secluded loop between Boulevard Saint-Germain and the Seine, comes in on top, with average prices of $2,454 a square foot as of March 2024.

For more than two decades, Kyle Branum, a 51-year-old attorney, and Kimberly Branum, a 60-year-old retired CEO, have been regular visitors to Paris, opting for apartment rentals and ultimately an ownership interest in an apartment in the city’s 7th Arrondissement, a sedate Left Bank district known for its discreet atmosphere and plutocratic residents.

“The 7th was the only place we stayed,” says Kimberly, “but we spent most of our time in the 6th.”

In 2022, inspired by the strength of the dollar, the Branums decided to fulfil a longstanding dream of buying in Paris. Working with Paris Property Group, they opted for a 1,465-square-foot, three-bedroom in a building dating to the 17th century on a side street in the 6th Arrondissement. They paid $2.7 million for the unit and then spent just over $1 million on the renovation, working with Franco-American visual artist Monte Laster, who also does interiors.

The couple, who live in Santa Barbara, Calif., plan to spend about three months a year in Paris, hosting children and grandchildren, and cooking after forays to local food markets. Their new kitchen, which includes a French stove from luxury appliance brand Lacanche, is Kimberly’s favourite room, she says.

Another American, investor Ashley Maddox, 49, is also considering relocating.

In 2012, the longtime Paris resident bought a dingy, overstuffed 1,765-square-foot apartment in the 6th and started from scratch. She paid $2.5 million and undertook a gut renovation and building improvements for about $800,000. A centrepiece of the home now is the one-time salon, which was turned into an open-plan kitchen and dining area where Maddox and her three children tend to hang out, American-style. Just outside her door are some of the city’s best-known bakeries and cheesemongers, and she is a short walk from the Jardin du Luxembourg, the Left Bank’s premier green space.

“A lot of the majesty of the city is accessible from here,” she says. “It’s so central, it’s bananas.” Now that two of her children are going away to school, she has listed the four-bedroom apartment with Varenne for $5 million.

The Most Expensive Neighbourhoods: Notre-Dame and Invalides

Garrow Kedigian is moving up in the world of Parisian real estate by heading south of the Seine.

During the pandemic, the Canada-born, New York-based interior designer reassessed his life, he says, and decided “I’m not going to wait any longer to have a pied-à-terre in Paris.”

He originally selected a 1,130-square-foot one-bedroom in the trendy 9th Arrondissement, an up-and-coming Right Bank district just below Montmartre. But he soon realised it was too small for his extended stays, not to mention hosting guests from out of town.

After paying about $1.6 million in 2022 and then investing about $55,000 in new decor, he put the unit up for sale in early 2024 and went house-shopping a second time. He ended up in the Invalides quarter of the 7th Arrondissement in the shadow of one Paris’s signature monuments, the golden-domed Hôtel des Invalides, which dates to the 17th century and is fronted by a grand esplanade.

His new neighbourhood vies for Paris’s most expensive with the Notre-Dame quarter in the 4th Arrondissement, centred on a few islands in the Seine behind its namesake cathedral. According to Le Breton, home prices in the Notre-Dame neighbourhood were $1,818 a square foot in 2023, followed by $1,568 a square foot in Invalides.

After breaking even on his Right Bank one-bedroom, Kedigian paid $2.4 million for his new 1,450-square-foot two-bedroom in a late 19th-century building. It has southern exposures, rounded living-room windows and “gorgeous floors,” he says. Kedigian, who bought the new flat through Junot Fine Properties/Knight Frank, plans to spend up to $435,000 on a renovation that will involve restoring the original 12-foot ceiling height in many of the rooms, as well as rescuing the ceilings’ elaborate stucco detailing. He expects to finish in 2025.

Over in the Notre-Dame neighbourhood, Belles demeures de France/Christie’s recently sold a 2,370-square-foot, four-bedroom home for close to the asking price of about $8.6 million, or about $3,630 a square foot. Listing agent Marie-Hélène Lundgreen says this places the unit near the very top of Paris luxury real estate, where prime homes typically sell between $2,530 and $4,040 a square foot.

The Most Expensive Suburb: Neuilly-sur-Seine

The Boulevard Périphérique, the 22-mile ring road that surrounds Paris and its 20 arrondissements, was once a line in the sand for Parisians, who regarded the French capital’s numerous suburbs as something to drive through on their way to and from vacation. The past few decades have seen waves of gentrification beyond the city’s borders, upgrading humble or industrial districts to the north and east into prime residential areas. And it has turned Neuilly-sur-Seine, just northwest of the city, into a luxury compound of first resort.

In 2023, Neuilly’s average home price of $1,092 a square foot made the leafy, stately community Paris’s most expensive suburb.

Longtime residents, Alain and Michèle Bigio, decided this year is the right time to list their 7,730-square-foot, four-bedroom townhouse on a gated Neuilly street.

The couple, now in their mid 70s, completed the home in 1990, two years after they purchased a small parcel of garden from the owners next door for an undisclosed amount. Having relocated from a white-marble château outside Paris, the couple echoed their previous home by using white- and cream-coloured stone in the new four-story build. The Bigios, who will relocate just back over the border in the 16th Arrondissement, have listed the property with Emile Garcin Propriétés for $14.7 million.

The couple raised two adult children here and undertook upgrades in their empty-nester years—most recently, an indoor pool in the basement and a new elevator.

The cool, pale interiors give way to dark and sardonic images in the former staff’s quarters in the basement where Alain works on his hobby—surreal and satirical paintings, whose risqué content means that his wife prefers they stay downstairs. “I’m not a painter,” he says. “But I paint.”

The Trendiest Arrondissement: the 9th

French interior designer Julie Hamon is theatre royalty. Her grandfather was playwright Jean Anouilh, a giant of 20th-century French literature, and her sister is actress Gwendoline Hamon. The 52-year-old, who divides her time between Paris and the U.K., still remembers when the city’s 9th Arrondissement, where she and her husband bought their 1,885-square-foot duplex in 2017, was a place to have fun rather than put down roots. Now, the 9th is the place to do both.

The 9th, a largely 19th-century district, is Paris at its most urban. But what it lacks in parks and other green spaces, it makes up with nightlife and a bustling street life. Among Paris’s gentrifying districts, which have been transformed since 2000 from near-slums to the brink of luxury, the 9th has emerged as the clear winner. According to Le Breton, average 2023 home prices here were $1,062 a square foot, while its nearest competitors for the cool crown, the 10th and the 11th, have yet to break $1,011 a square foot.

A co-principal in the Bobo Design Studio, Hamon—whose gut renovation includes a dramatic skylight, a home cinema and air conditioning—still seems surprised at how far her arrondissement has come. “The 9th used to be well known for all the theatres, nightclubs and strip clubs,” she says. “But it was never a place where you wanted to live—now it’s the place to be.”

With their youngest child about to go to college, she and her husband, 52-year-old entrepreneur Guillaume Clignet, decided to list their Paris home for $3.45 million and live in London full-time. Propriétés Parisiennes/Sotheby’s is handling the listing, which has just gone into contract after about six months on the market.

The 9th’s music venues were a draw for 44-year-old American musician and piano dealer, Ronen Segev, who divides his time between Miami and a 1,725-square-foot, two-bedroom in the lower reaches of the arrondissement. Aided by Paris Property Group, Segev purchased the apartment at auction during the pandemic, sight unseen, for $1.69 million. He spent $270,000 on a renovation, knocking down a wall to make a larger salon suitable for home concerts.

During the Olympics, Segev is renting out the space for about $22,850 a week to attendees of the Games. Otherwise, he prefers longer-term sublets to visiting musicians for $32,700 a month.

Most Exclusive Address: Avenue Junot

Hidden in the hilly expanses of the 18th Arrondissement lies a legendary street that, for those in the know, is the city’s most exclusive address. Avenue Junot, a bucolic tree-lined lane, is a fairy-tale version of the city, separate from the gritty bustle that surrounds it.

Homes here rarely come up for sale, and, when they do, they tend to be off-market, or sold before they can be listed. Martine Kuperfis—whose Paris-based Junot Group real-estate company is named for the street—says the most expensive units here are penthouses with views over the whole of the city.

In 2021, her agency sold a 3,230-square-foot triplex apartment, with a 1,400-square-foot terrace, for $8.5 million. At about $2,630 a square foot, that is three times the current average price in the whole of the 18th.

Among its current Junot listings is a 1930s 1,220-square-foot townhouse on the avenue’s cobblestone extension, with an asking price of $2.8 million.