For the past few years, institutional investors have been looking to retail, office and industrial assets in search of core and core-plus opportunities. Much of this attention has focused on Asia Pacific, led by China: China generates half of the region’s GDP, driving strong consumer demand and tourism, given its rising urbanisation and expanding middle class.

At the same time, institutional investors looking to participate in Asia’s growth story tend to overlook Japan. Indeed, the country’s real and perceived economic challenges continue — ageing population, persistent lack of inflation, continually-tepid consumer spending. But for institutions looking to invest in the Japanese property market, the picture is improving. Like many parts of Asia, Japan holds pockets of opportunities driven by megatrends that can future-proof a portfolio. Investors can choose the winners in this market by identifying sectors backed by megatrends and supported by robust, resilient city f