Japan Real Estate Market Quarterly Review-First Quarter 2024

Financial Research Department Economic Research Department Researcher Hiroto Iwasa

Macro Economy

In Q1 2024, Japan’s real GDP is expected to decrease by 0.4% q-o-q (annualized 1.6% decrease), the first negative growth in two quarters
Japan’s real GDP is expected to expand by 1.3% in FY2023, 1.0% in FY2024, and 1.1% in FY2025

Real Estate Market

Tokyo office market emerges from adjustment phase, showing signs of recovery
In Tokyo 23-ku, multifamily rents continue to rise steadily
Retail sales continue to increase, driven by robust inbound consumption, particularly in department stores
The number of guests has consistently remained above pre-pandemic levels, resulting in significant improvements in hotel revenues
Vacancy rates in Greater Tokyo logistics markets reached the highest level in 12 years since 2012

Capital Market

J-REIT Index decreased by 0.7% q-o-q in Q1 2024, trading at a price to NAV ratio of 0.89x, dividend yield at 4.4%, and dividend and JGB spread at 3.7% in March 2024
J-REITs acquired property assets totaling JPY509 billion in Q1 2024 (39% increase 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.