Hotels, which can benefit more from the foreign visitor increase than retail stores, have maintained the highest occupancy rates in recent years for every month this year (Chart-22).
According to Ota Publications, as hotel occupancy rates in Urayasu and Kyoto surpassed 95% in August and September, most hotel rooms were often fully reserved in many cities. Not only have occupancy rates increased but room-rates have also been raised, and according to STR Global, the RevPAR of Japanese hotels in August grew by +14.7% y-o-y to 16,455 JPY.
The logistics leasing market has been sustained by increasing demand. Vacancy rates of large logistics facilities for multi-tenants in the Tokyo and Osaka metropolitan area improved from 3.6% to 3.5% and from 4.8% to 4.5%, respectively (Chart-23).
Only one facility, Shinkiba Butsuryu Center, was completed in the Tokyo metropolitan area, and the modest supply pushed the vacancy rates down. On the other hand, a giant facility, GLP Naruohama with a GFA of 110,373m
2, was completed in the Osaka metropolitan area. However, strong demand absorbed the vacant spaces of new facilities completed in the first half of this year and the vacancy rates continued improving.
In the Tokyo metropolitan area, a gigantic volume of new supply is scheduled in the fourth quarter followed by a series of sizable new supply throughout 2016. Although strong demand is expected to absorb parts of the new supply, it seems that vacancy rates will continue to rise for the time being.
In the Osaka metropolitan area, no new supply is scheduled in the fourth quarter. However a sizable supply will come in the latter half of 2016 and vacancy rates will turn upward.