"Japan is now benefiting from second round effects of Asia's overheated property sector," she said.
The average price of new condominium prices in the Tokyo Metropolitan area, for example, soared 12.2 percent in July on-year, according to the latest data from the Land Institute of Japan. That may reflect growing momentum in the country's housing market on the back of Prime Minister Shinzo Abe's economic policies, dubbed Abenomics, which have instilled confidence among residents.
While Tokyo is the world's third most expensive city to live in, according to Mercer, ultra high-end property in the Japanese city still looks like a bargain compared with the Hong Kong – which ranks sixth.
For example, a three-bedroom apartment in one of Tokyo's highest-priced luxury condominiums, The "Parkhouse Gran Chidorigafuch", costs $22,000 per square foot, according to Jones Lang La Salle. In Hong Kong, an apartment of the same caliber, such as "Argenta", costs almost $30,000 per square foot.
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The interest in Japanese property comes at a time when tensions have escalated between Beijing and Tokyo over disputed islands in the East China Sea, where both countries have laid claim. The tensions led to violent protests across China last year, and led to Chinese consumers boycotting Japanese goods.
The developments don't seem to be putting off Chinese property hunters.
Overseas buyers made up a small portion of property sales in Tokyo at just 10 percent in 2012, much lower than other major markets such as New York and London at 31 percent and 63 percent, respectively, data from Jones Lang La Salle showed.