Japan Real Estate Market Quarterly Review-Third Quarter 2020

Financial Research Department Makoto Sakuma 

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Macro Economy
  • Japan’s real GDP is expected to expand by 3.8% q-o-q (annualized 16.1%) in Q3 2020, unlikely to recover the pre-pandemic level.
  • Economic recovery is expected to be moderate going forward. GDP is expected to contract by 5.8% in FY2020, followed by 3.6% growth in FY2021.

Real Estate Market
  • Tokyo grade-A office rents declined by 2.1% q-o-q in Q3 2020. Tokyo multifamily rents also seemed to hit the peak
  • Hotel and retail sectors seeing signs of recovery, while outlook remain gloomy in both sectors as the second wave of COVID-19 infections picking up.
  • Amid the steady market fundamentals, logistics rents have continued to increase in Q3 2020.

Capital Market
  • J-REIT Index increased by 3.6% q-o-q in Q3 2020, underperforming TOPIX for fourth consecutive quarters..
  • J-REITs acquired property assets totaling JPY266 billion in Q3 2020, decreasing by 8% y-o-y.

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


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