As global GDP growth slows on the heels of rising interest rates to combat inflation, how should property investors interested in Japan view the country’s markets and investment opportunities? In December 2022, Institutional Real Estate Asia Pacific senior editor Dr Jennifer Molloy spoke with three experts on Japan.
From the Current Issue
As the landscape for senior homes in Japan continues to evolve with deeper institutional penetration, liquidity and pricing margin will expand, positioning this asset class for attractive long-term performance.
The Asia Pacific region rebounded strongly from the pandemic, recording GDP growth of 6.5 percent in 2021, according to the International Monetary Fund. While the pace of economic expansion is expected to moderate, slowing to 4.3 percent in 2023, it is still well above IMF forecasts for a US GDP growth of 1 percent in 2023 and just 0.5 percent for Europe.
During the past few months, investors, managers and consultants participated in Editorial Advisory Board meetings for each of Institutional Real Estate, Inc’s regional publications to discuss the most pressing issues facing the real estate investment industry.
I’ve been seeing several pundits lately suggesting that real estate investing has become more risky today. What is true is that all investments, other than sovereign issuances such as Treasuries, are risky.
Given the relaxation of COVID-19 control measures, the general economy in China is expected to recover in 2023, boosting leasing and investment demand across all property types in the greater China region as market confidence returns, according to Cushman & Wakefield’s The Forecast Report: Greater China commercial real estate – what to watch in 2023.
In Asia Pacific, optimism has given way to caution, as tumultuous economic and financing conditions weigh on sentiment, according to JLL, which expects the region’s real estate investment volume to decline 5 percent to 10 percent in 2023, moderating further after a year-on-year decline of 25 percent in 2022.
A joint venture of Lendlease and Aware Super has received a US$360 million construction loan for 1 Java Street (rendering pictured), a 36-storey, mixed-use waterfront development in the Greenpoint neighbourhood of Brooklyn, New York adjacent to the East River in the United States.
This past December, two virtual roundtables with institutional investors, consultants and investment managers held by Institutional Real Estate, Inc addressed US recession risks as well as investing in data centres in Asia. The in-depth discussions were moderated by Reno Sio, managing director, Asia Pacific, at IREI.