Tokyo expected yields fall for hotels only

The most recent quarterly cap rate survey conducted by CBRE found that expected yields in Tokyo declined q-o-q for hotels, remaining essentially unchanged in Q1 2023 for all other sectors (averages). Having fallen steadily since Q4 2021, hotels (management contract) recorded a 5 bps q-o-q decline in yields again this quarter, bringing expected yields in line with the Q1 2020 figure.

In terms of expected yields for offices in regional cities, Nagoya recorded a decline of 2 bps q-o-q, which may have been affected by an actual deal that took place during the quarter, the cap rate of which was seen to be below prior levels.