Tokyo trades $ 13.2 billion in the first half… Multi -family residential sector, 96% market share
Thanks to the ‘loose monetary policy’… Overseas investors purchase assets at low interest rates
Japan’s real estate market attracts $ 22.8 billion and booms in Asia
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The Japanese real estate market has emerged as the most active market in Asia, attracting huge overseas investment, according to South China Morning Post (SCMP) last month.
In the first half of this year, Japan attracted $ 22.8 billion (about 31.5 trillion won), which is one third of the total real estate investment in Asia -Pacific. In particular, Tokyo recorded $ 13.2 billion in transactions and reigned as the best largest cities in Asia in offices, sleeves and apartments.
Angel Li of Avatar Capital Partners said that Japan’s new economic vitality is promoting investment in the real estate market, saying that various asset management companies should be wise for investment to secure assets.
In July, Avatar completed the financing of 15.2 billion yen (about 130 billion won) for the first real estate fund and acquired five multi -family assets in the center of Tokyo.
Lee emphasized that “there is still a lot of housing demand in the center of Tokyo, and it is quite flexible because the market share in the multi -family house is 96%.” These assets are mainly composed of one bedroom unit, with an average monthly rent of 150,000 yen (about 136 million won).
Weave Living and US Private Private Fund KKR, headquartered in Hong Kong, bought six real estate in Tokyo’s high -end areas and increased the portfolio in Japan to 17 assets. Mindworks Property also entered the Japanese market by acquiring multi -family apartment blocks in Minato -gu, Tokyo.
This investment boom was possible thanks to the loose monetary policy of the Bank of Japan (BOJ). Currently, short -term interest rates in Japan (0.5%) are much lower than the US 4.25 ~ 4.5%and 4%of the UK, allowing investors to raise Japanese asset purchase funds with attractive interest rates. But this is causing fierce competition, Lee said.
Lee pointed out that rising wages in Japan are also affecting the investment environment. “The data from 1990 to 2020 has increased by 10%, but the salary has already increased 5.3% this year,” he said.
Shin Min-cheol Global Economic Reporter Shincm@g-enws.com
