Big Ticket Deals Drive Up 2017 Volume by 30% y-o-y

  • In 2017, real estate investment transaction volume rose 29% y-o-y to JPY 3.9 trillion, driven by large-scale transactions and M&A.
  • Transaction volume by overseas investors increased by 102% y-o-y to JPY 1.24 trillion. Overseas investors accounted for 70% of the increase in total transaction volume. Meanwhile, J-REIT transaction volume rose by just 3% y-o-y to JPY 1.3 trillion, on the back of weak share prices throughout the year.
  • CBRE's latest quarterly survey in January 2018 found that expected yields for logistics facilities declined by 6 bps q-o-q to 4.64%, while the other four asset types remained unchanged at their respective lowest levels since CBRE's surveys began.
  • While prime office rents in central Tokyo appear to be peaking, investor appetite remains high, particularly among institutional investors. In particular, given the limited investment opportunities at present, there is rising interest in portfolios and large-scale properties that enable investors to build scale.