Dongtan Apartment Prices Starting at 2.2 Billion Won? Taiwanese Investors Flood Japan Saying "We Made So Much Money, We Don't Know Where to Spend It"

Wealth From TSMC Flows Into Japanese Real Estate
Asset Surge Fueled by the AI Boom
Weaker Yen and Geopolitical Risks Intertwined

An apartment complex area (commonly called manshon) in Fukuoka, Japan. Photo by Kyodo News Agency

Wealthy individuals from Taiwan, who have accumulated vast fortunes thanks to the AI semiconductor boom, are emerging as major new players in the Japanese real estate market. As the Taiwanese economy enjoys an unprecedented boom centered around TSMC, the core of the global AI supply chain, a weak yen and rising geopolitical tensions between China and Taiwan are driving the Japanese luxury housing market to become a key safe haven for the island's affluent class.

In Korea, too, the influence of semiconductor capital is becoming more apparent, with apartment prices in Dongtan New Town, Hwaseong, Gyeonggi Province—an area supporting employees of Samsung Electronics—surpassing 2.2 billion won. Massive funds centered around Samsung Electronics and TSMC are redrawing the "map of wealth" across borders.

Two Out of Every Three Tokyo Homes... Bought by Taiwanese

According to Nikkei Asia on July 6, two out of every three foreign investors who purchased new condominiums in central Tokyo were found to be Taiwanese nationals. In particular, during the first half of 2025, Taiwanese buyers acquired 192 new apartments in Tokyo's 23 wards, already far exceeding the total annual sales for 2024. Major Japanese real estate firms report that "Taiwanese clients now make up 20-30% of foreign customers, establishing themselves as the most important group of buyers."

The starting point for this capital movement is the AI industry. As the Taiwanese semiconductor sector, with TSMC at the core of Nvidia's supply chain, has rapidly expanded, both corporate and personal assets have surged. The TAIEX, the main index of the Taiwan stock market, has recorded a sharp increase this year, and economic growth is also expected to reach its highest level in several years.

TSMC logo. Photo by Reuters-Yonhap News

Lin Jia-Qing, CEO of a company that brokers real estate for Taiwanese buyers in Tokyo, said, "There are quite a few clients who have made so much money that they don't know where to invest it."

"100 Million Yen Feels Like 60% of the Price"... The Yen's Illusion

The exchange rate environment is also a key factor fueling the investment fever. The yen's prolonged weakness over the past few years has led Taiwanese investors to view Japanese real estate as "discounted assets."

Industry insiders say, "A 100 million yen asset feels like it's only 60% of its actual value." On top of this, the fact that prices for luxury homes in Tokyo remain lower than those in Taipei adds to the appeal.

Real Estate as a 'Safe Haven'... Geopolitical Tensions Between the Two Sides

Geopolitical risk is another critical backdrop. As tensions between China and Taiwan remain prolonged, wealthy Taiwanese increasingly see acquiring overseas assets as a form of "safety net."

Street in Tokyo, Japan. Japan National Tourism Organization

Japan is considered a practical alternative, thanks to its geographic proximity and well-developed living infrastructure. As a result, demand is growing not only for investment but also for "second homes" that can serve as a residence in times of crisis.

Hsinchu and Dongtan... The 'Map of Wealth' Shaped by Semiconductors

This trend is not limited to Japan. Similar phenomena are already occurring in semiconductor hubs such as Hsinchu in Taiwan and Dongtan in Korea. Hsinchu, home to TSMC headquarters, has seen a surge of high-income professionals, causing property prices to skyrocket in recent years; in some areas, prices have more than doubled in the past seven years. Zhubei, an emerging affluent neighborhood, has even changed the local economy and lifestyle structure.

Aerial view of Dongtan Station Sibeom The Sharp Central City Apartments in Hwaseong, Gyeonggi-do. Photo by Seongah Shim

Korea is no exception. In the southern Gyeonggi Province semiconductor belt anchored by Samsung Electronics and SK hynix, areas like Dongtan, Yongin, and Bundang are experiencing significant rises in housing prices. In Dongtan, major complexes have recorded transactions exceeding 2 billion won, making it a symbol of the market.

Concerns About Side Effects

However, the concentration of wealth in specific industries has brought with it social side effects. In Japan, criticism is growing that the influx of foreign capital is excessively inflating urban housing prices. In both Taiwan and Korea, the so-called "K-shaped polarization" is deepening as only certain industries thrive while others stagnate, increasing the social burden.

In response, the Japanese government has begun tightening regulations, such as strengthening nationality and identity verification for foreign real estate transactions. However, experts believe that, given the convergence of global liquidity flows, geopolitical factors, and the prolonged boom in advanced industries, this cross-border concentration of real estate investment centered on semiconductor capital is unlikely to subside in the short term.

This content was produced with the assistance of AI translation services.