Cross Border Capital Flows into Japanese Properties in 2015-Risk-Off Sentiment Restrains Property Transactions-
- While the risk-off sentiment spread into financial markets all over the world, the transaction volume of Japanese properties shrank for the first time in four years in 2015.
- The volume of acquisitions of Japanese properties by cross border capital fell short of half of that of the same period one year ago in the second half of 2015.
- Cross border capital decreased acquisitions for all property sectors, however, Asian capital increased to acquire Japanese hotels.
- Cross border capital has shown an increasing preference for Tokyo.
- Both U.S. and Asian capital decreased acquisitions of Japanese properties.
- It is not likely that cross border capital acquisitions of Japanese properties will increase for the time being, however properties with a growth driver, or positioned to benefit from the better infrastructure of Tokyo will continue to attract cross border capital.
1.Transaction Volume of Japanese Properties
2.Volume of Acquisitions by Cross Border Capital
4.Concentration on Tokyo
5.Capital Inflows from the U.S. and Asia