Insights to real estate wealth
What does USD 10-20 million buy?
Close to the prominent Ginza district, a low-rise commercial building of about 15,000 sq ft, located in Chuo-ku
What does USD 100 million buy?
A compact office building with 100,000 sq ft of net lettable area in Minato-ku, one of Tokyo’s 23 special municipalities that makes up the city’s core
Japan hosts a large population of international students from Asia, with China sending 61% of the total pool, followed by South Korea and Taiwan4. The city’s rich culture and proximity to other Asian cities presents a win-win scenario for many families. Japanese universities feature prominently in world university rankings, with the University of Tokyo and the Tokyo Institute of Technology ranking 25th and 57th respectively5.
Things are looking up for Japan in 2012 as GDP is expected to improve significantly due to reconstruction related demand from last year’s tsunami and earthquake disaster. New office supply in 2012 will equate to about 130% of the past ten-year average. Take-up is expected to be relatively robust, supported by companies intending to consolidate their business, improve the quality of their buildings and reduce rental costs.
Office rental trends vary by property, while the overall figure remained flat between Q3 and Q4 2011. We expect rental values to trend upwards gradually, and in line with this, investment yields should decrease slightly while capital values increase. Capital values are expected to rise by approximately 10-15% in 2012.
While overseas investors have not fully returned to the market, Japanese investors and J-REITS in particular are actively acquiring property. In addition, Asian investors seem especially keen on picking up good investment opportunities. Tokyo has been reconfirmed as a stable market that provides a large number of superior real estate assets.
For more information, visit www.joneslanglasalle.co.jp/Japan/EN-GB/Pages/Home.aspx
4 Institute of International Education, 2010
5 QS World University Rankings, 2011/12
- - University of Tokyo
- - Tokyo Institute of Technology
- - Tokyo Medical and Dental University