Japan Investment MarketView Q2 2022

August 15, 2022

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Transaction volume rises 38% y-o-y
Investors anticipate interest rates to remain low


  • Commercial real estate Investment volume in Japan reached JPY 719.0 billion in Q2 2022, up 38% y-o-y. Purchasing was led by office transactions, the volume of which rose by 192% y-o-y. The period saw several large buildings acquired not only in the Tokyo CBD, but also in the Tokyo bayside area and Yokohama.
  • Average expected yields for the Tokyo market fell across all sectors this quarter. Meanwhile, CBRE’s latest Tankan Survey showed that the Diffusion Index (DI) for logistics facilities declined significantly in the category of “sales prices”, with fewer investors anticipating rent increases.
  • CBRE survey revealed that over 70% of investors anticipate low interest rates to continue into next summer. Meanwhile, rise in interest rates in the overseas markets have led some overseas investors to adopt a more cautious strategy. Should these investors increase their asset sales, it could push up total transaction volume in the coming quarters.