Aside from the trade war, he cited the detention of Huawei chief financial officer Meng Wanzhou in Vancouver, as well as Australia’s stricter immigration policies, as leading mainland investors to question traditional investment destinations.

“But then they [mainlanders] need somewhere to invest. So they come to Tokyo and Osaka, which are some of the most liveable cities in Asia in terms of transport, infrastructure and social order,” Yeung said.

He cited plans by authorities in Osaka to select a preferred developer for an integrated casino resort next year, as well as its role as host city to Expo 2025 as among the attractions for mainland investors to the Japanese port city.

Another positive, Yeung said, are new visa rules which took effect April 1 that make it easier for foreign workers to enter the country, reflecting a major policy shift from Tokyo’s traditionally strict rules on labour and immigration.

He added that home prices in Hong Kong and Shanghai were higher than those in major Japanese cities, which have tumbled to remain 60 per cent below levels seen during the peak of the property bubble in 1990.

“This is why some Chinese, especially those from Shanghai, would sell some assets in China and buy properties here [in Japan],” said Yeung, whose agency has a branch in Shanghai.

Tetsuya Kaneko, head of research and consultancy at Savills Japan, said improving perceptions among mainlanders towards Japan was another factor behind the shift.

“The relationship between Japan and China looks much better than before,” Kaneko said.

He said more mainlanders were opting to visit Japan as an alternative holiday destination the US.

“Some Chinese buy properties in Japan rather than in the US, which … is likely to increase,”

Kaneko said.