- March 1, 2017: Vol. 9, Number 3

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A sea change in Japan: Japan’s wave of capital flight to overseas real estate will be a long-term trend

by Yukihiko Ito

Last year was another whirlwind one for Japan. A number of significant events brought opportunities to Japanese investors, which began to ride the wave of outbound investment. For the past few decades, Japanese investors have been relatively conservative about investing in overseas real estate markets and, given these investors are struggling with Japan’s deteriorating economy and very low profits from its financial markets, outbound investment is an unavoidable step for them. This trend is only starting to crystallise now, and big and long-lasting waves are expected through 2017.

Major actions and players in 2016

In 2016, several big announcements were made by potential key players, suggesting their preparation and readiness for outbound investments.

Early in the year, Japan Post Bank Co, which holds assets worth more than US$1.7 trillion, announced its new division for real estate investment, aiming to shift portfolios toward a reduction in

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