Japan Real Estate Market Quarterly Review-Second Quarter 2020

Financial Research Department Makoto Sakuma 

Font size

  • S
  • M
  • L


Macro Economy
  • Japan’s real GDP plunged by 7.8% q-o-q (annualized 27.8%) in Q2 2020. GDP is expected to contract by 5.4% in FY2020, followed by 3.6% growth in FY2021.
  • Economic recovery is expected to be moderate despite massive fiscal and monetary measures.

Real Estate Market
  • Vacancy rate of Tokyo office market remains at near historical low, but expected to trend upwards in the latter half of 2020.
  • Amid the steady market fundamentals, logistics and multifamily rents have continue to increase in Q2 2020.
  • The COVID-19 pandemic have severely impacted hotel and retails, which remain highly unpredictable.

Capital Market
  • J-REIT Index increased by 4.5% q-o-q in Q2 2020, underperforming TOPIX for third consecutive quarters.
  • J-REITs acquired property assets totaling JPY241 billion in Q2 2020, decreasing by 47% y-o-y dragged by stagnate share prices.

This report includes data from various sources and NLI Research Institute does not guarantee the accuracy and reliability. In addition, this report is intended only for providing information, and the opinions and forecasts are not intended to make or break any contracts.

Financial Research Department  

Makoto Sakuma

Research field
Real Estate Research and Strategy, Proptech


X Facebook

Social media account