Are you bullish or bearish ?
Two surveys by the major institutions revealed that both institutional investors and individual investors are bullish about the real estate market in Japan.
In the survey released by the Japanese real estate research institute in May, real estate price has been rising steadily due to the recovery of corporate performance and the expectations for the Tokyo Olympic Games and Abenomics.
The survey was conducted mainly for institutional investors.
However, 72 % of respondents say the real estate investment market is seeing the peak for the time being.
83.2% of respondents say many deals with remarkably low yields are appearing, compared to 68% in the previous survey in October 2017.
As for the view on investment in the next coming year, 90% of respondents say they will actively continue to make investments, up one point from the previous survey.
It indicates that the general consensus is still bullish.
Only 8% of respondents say they will be stopping the making new investment. Regarding the real estate market, attention is paid to interest rate trends in the United States and the monetary policy of the Bank of Japan.
As a whole investors’ willingness to invest is very positive
Regarding market expectation, the majority of institutional investors say that the market will expand in the next 6 months in both Tokyo and Osaka.Read more