Office: Despite a doubling of annual new supply the market will continue to be favorable for owners. Tokyo’s working-age population is forecast to continue to growth until 2025, contributing sustained high demand for Grade A office buildings.
Retail: With greater numbers of long-haul visitors for the Rugby World Cup and Chinese visitors, inbound spending hit a record high in Q3, up 9.0% year-on-year.
Logistics: With high quantity and good customer relations Amazon is establishing a new norm for e-commerce logistics in Japan, partially driven by ecological concerns in the logistics industry.
Investment: By sector, office transactions slowed, contracting 56.6% y-o-y in Q4, due to limited options and tight yields. Logistics, hotel and residential sectors were favored by institutional investors, dominating overall volume with y-o-y increases of 89.6%, 94.2% and 104.71% respectively.
Key economic indicators: Real GDP decreased by 6.3% q-o-q annualized, marking the first negative growth in five quarters.
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