Japanese Outbound Real Estate Transaction Volume Falls 64% y-o-y to US$ 577 million
CBRE today released "Japanese Outbound Real Estate Investment H1 2018," an infographic summarizing overseas direct investment activity by Japanese investors in existing properties.
Highlights
H1 2018 Japanese outbound real estate transaction volume falls 64% y-o-y to US$ 577 million
The volume of Japanese outbound investment in existing real estate declined by 64% y-o-y to US$ 577 million in H1 2018. By region, most investment occurred in the Americas (US$ 363 million), although this figure marked a decline of 74% compared to the same period last year, which pushed down the overall total. Transaction volume in EMEA was US$ 214 million, compared to no transactions in this time last year. No transactions were reported in other regions. By asset type, most investment was in the office sector, accounting for 77% of the total.
Outlook for H2 2018 and beyond: Appetite for outbound real estate investment remains strong
Although there was a y-o-y fall in transaction volume in H1 2018, Japanese investors' appetite for overseas real estate remains strong.
- More funds being set up by domestic developers, providing framework for indirect real estate investment
H1 2018 saw the announcements of several funds targeting overseas real estate as well as acquisitions of overseas asset management firms. Japanese investors continue to set up a framework to facilitate outbound investment. - Investment for development remains active, especially in Asia
The total cost of overseas real estate development projects announced in H1 2018 (CBRE estimate) was approximately US$ 3.5 billion. 90% of these projects are in Asia (operating cost basis), and 60% is housing.
Note: Japanese outbound real estate investment covers transactions outside Japan where the buyers are Japanese investors (excluding land transactions). Indirect investment comprises investment via equity investment in funds, etc. Development investment consists of investment in developing real estate where the investor becomes (one of) the project operator(s) overseas.
The infographic is available for download at:
https://www.cbre.co.jp/en/research-reports/investment-reports
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