A balanced assessment of the Japanese real estate market
Mitsubishi UFJ Trust and Banking Corporation has published two new real estate market research reports. The reports contain many useful data and are fully accessible (see links on the attached webpage). Here are some findings for Japan: Investors’ willingness to invest in real estate is weakening, especially in the U.S. and Europe. Japan is experiencing a weakening, too, though to a much lesser extent. Also different from Europe and the U.S., lenders’ lending attitudes in Japan generally remain favorable. The number of real estate asset management companies that expect “inflows of investment funds” and “declining yields” as changes that will occur in the real estate investment market over the next year has declined significantly. There is upward pressure on cap rates, and foreign investors, in particular, who have dominated the market, are showing a cautious attitude. Investors who have been looking for opportunities to acquire properties may see this as an expansion of opportunities to acquire properties at yields that suit their needs.
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