博鱼体育集团

In terms of markets in demand from regional investors, Japan is firmly in the spotlight, with real estate investment here running above the long-term average. Japan stands out among major economies with a remarkable 156% increase in investment volume compared to 2022, amidst a general decline in activities for the region.

Investors have been pricing in a normalisation of monetary policy in 2024. Structural reforms focusing on improving governance and shareholder value have propelled the country鈥檚 stock markets to a 30-year high.

Still, after three decades of deflationary pressures, Bank of Japan鈥檚 historic decision to raise short-term interest rates to 0-0.1% in March 2024 is not anticipated to substantially affect the overall investment climate, and the impact on funding costs will remain manageable. With prime capitalisation rates in Tokyo ranging from 3鈥�4.4%, spreads continue to remain compelling. The weight of capital-seeking acquisitions should limit yield expansion. 

Leasing fundamentals will remain key to sustaining cash flow and preserving value. The strengthening of manufacturing supply chains has enabled demand for logistics space to keep pace despite an elevated new supply pipeline. Multifamily assets also continue to attract the attention of investors, particularly as rents are expected to grow in line with wage increases. 

Asian buyers, especially from Taiwan, Hong Kong SAR, and Singapore, dominate the Japanese market, compensating for lower activity from Western investors. The rise of private investment is notable, with family offices increasingly moving capital into Japan amid uncertainties in the wider region.

The stable investment climate and the depth of its real estate market mean that Japan will remain central for many regional investment strategies. With the yen likely to appreciate, investors also have a window of opportunity to lock in value at current exchange rates.

For more insights on our latest edition of The Wealth Report, please click here: