Japan Real Estate Market Quarterly Review-Second Quarter 2024

Financial Research Department Watanabe Fumiko

Summary

Macro Economy

In Q2 2024, Japan’s real GDP is expected to increase by 0.8% q-o-q (annualized 3.0% increase), the first positive growth in two quarters
Japan’s real GDP is expected to expand by 0.7% in FY2024, and 1.1% in FY2025

Real Estate Market

In the Tokyo office market, there are clear signs that rents have bottomed out
In Tokyo 23-ku, multifamily rents are steadily increasing
Retail sales are continuously increasing due to the strong growth in inbound consumption
The vacancy rate in the Greater Tokyo logistics market remains high due to the impact of new supply
Although domestic tourists demand has stagnated, inbound demand is driving the number of guests to exceed pre-COVID levels

Capital Market

J-REITs remained weak towards the end of the period, amid heightened caution about rising interest rates
J-REITs acquired property assets totaling JPY238 billion in Q2 2024 (-0.7% decrease 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.