Japan’s real GDP is expected to grow by 1.4% q-o-q (annualized 5.6%) in Q4 2021 driven by a strong rebound of private consumption after the lift of state of emergency.
Japan’s real GDP is expected to expand by 2.7% in FY2021, 2.5% in FY2022 and 1.7% in FY2023.
Real Estate Market
In Tokyo Grade-A office market, the rise in vacancy rates has paused, but rents continued to fall, reaching the level of Q4 2014.
Multifamily rents in Tokyo declined modestly as Tokyo population outflow continued.
Hotels and retails recovered sharply following the lift of the state of emergency declaration.
In major logistics markets, supply-demand balance remained favorable.
Capital Market
J-REIT Index declined by 0.3% q-o-q in Q4 2021, trading at price to NAV ratio at 1.1x, dividend yield at 3.5% and dividend and JGB spread at 3.4%.