Tokyo tops the global pricing order

Regionally and globally, Tokyo leads the pack in offering the highest finance and risk spread of any other city, according to Colliers’ April 2023 Global Capital Markets report, which indicates Tokyo is much less susceptible to future interest rate rises and, therefore, negative pricing adjustments.

The report highlights the effect rising interest rates are having on real estate pricing and the volume of capital investments around the world.

Commercial real estate transaction volumes worldwide were down substantially in the first quarter, dropping 56 percent in January and February against five-year norms and with provisional figures for March revealing a 76 percent decline given banking and liquidity issues in North America and Europe.

“The global rate rises that continued during the end of March suggest central bank policy rates in some locations — including Japan, North America and part of Europe — are at, or getting close to, peak forecast l