• Growing clarity in the market’s future:CBRE’s survey tracked a significant y-o-y decrease among those lenders who answered “real estate prices will fall”, “LTV ratios will increase” and “spreads will widen”.
  • Real estate prices to remain stable or increase: In terms of real estate prices, a slightly higher percentage of lenders polled responded that they expected prices to increase (17%) than those who anticipated a decrease (13%). Furthermore, lenders are anticipating NOI yields to be either equivalent to or lower than those seen before the advent of the pandemic for some prime Tokyo assets.
  • New loan volume is set to increase in FY 2021: Regarding financing policies, real estate non-recourse loan volume was projected to rise in FY 2021 for both senior (40%) and mezzanine (71%) .
  • Concerns over economic stagnation remain: The greatest threat to the real estate financial market remains “a domestic or international economic shock”, with this answer given by 50% of lenders, up two points from the previous year. For this reason, lenders are expected to remain cautious.