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Japan’s GDP returned to a mild recovery trend on the back of resilient corporate profits and an increasing number of inbound tourists. The labor market remained tight with unemployment rates standing at 3.3%, the lowest level in eighteen years, underpinning healthy office space demand. Uncertainties remain, however, as the deterioration in external conditions and a continued fall in manufacturing PMI intensifies. The stock price and economic indicators have started to reflect some weakening signs since summer 2015.
The real estate investment market remained active in the third quarter of 2015 and despite further yield compression in key cities in Japan, the spread between initial yield and bond yield remain above historical average. The volatility of the capital market increased significantly amid China’s stock market turmoil.
Source : Deutsche Asset & Wealth Management
