Japan



The recent monetary easing measures and a decline in the Japanese Yen support a favourable financial environment for investment. To curb falling prices, the Bank of Japan is committed to raise inflation to 2% in the near to medium term.

Investors continued to demonstrate a healthy appetite for the mainstay office sector. Foreign investors and JREITS remained active in office investment deals and the multi-family residential sector. Rents for average quality benchmark building are expected to start stabilizing in 2013. There is a lack of retail supply in core areas where several redevelopment schemes in prime locations were approved and there will be additional new supply coming on stream in 2014 and 2015 to meet with the demand.

There are major foreign brands looking for high quality space in prime locations. The average sales price for newly-built-for-sale condominiums in Greater Tokyo is expected to rise due to the expected plan to expand the housing tax credit.