Japanese Property Market Quarterly Review,First Quarter 2014-Grade-A Offices Lead Full Fledged Market Recovery-
金融研究部 不動産運用調査室長 加藤 えり子
- Japan`s actual GDP growth is likely to secure 2% in fiscal year 2013 with “Abenomics” and the rush of demand before the consumption tax increase. The housing market has already been affected by a reversal from the rush of demand and rising construction costs. In “Chika Kouji 2014,” the number of land price appreciating spots increased significantly.
- Office vacancy rates have decreased in Tokyo due to active moves and expansions by corporations, and the rents of Tokyo Grade-A offices and new buildings have been recovering strongly. Residential rents remained flat, though they are recovering in the medium term. The number of foreign visitors increased further in the first quarter and hotel occupancy rates remained high. Logistics vacancy rates remain low with strong demand though sizable supply continues.
- J-REIT market declined by 3.3% in the first quarter outperforming the equity market. While some corporations and private funds divested their assets with rising property prices, the investment market maintained its vibrancy before the fiscal year end.