Investment money flows into the real estate market. Although the world low interest rate is the background, while real estate prices are rising in Japan, yields are declining. How are global investors looking at the Japan market?  Mr. Nick Axford, global research head of real estate services giant CBRE answered.

 

 

Mr. Nick Axford- Is Japan's market attractive from the perspective of foreign investors?

"The answer is yes, first of all the market itself is large.When considering the investment in the world, it is a necessary area from the viewpoint of diversification of the risk. The most attractive point is that the yield spread (yield to minus funding procurement cost) is high. The yield is falling but due to the negative interest rate policy, the spread is still higher than other major countries'. "

- Areas of interest.

"There is a wide range of interests such as office buildings, logistics facilities, housing, etc. However, there are many cases where real estate investment trusts (REITs) acquire, and there are many instances in which they do not appear on the market"

- What are the possible risk factors in the future?

"New supply will increase for offices, logistics, hotels, etc. In some areas, it may be regarded as a risk when investing, the exchange rate needs to be considered investment in Japan continuously."