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Japan’s macro economy painted a mixed picture. Consumer confidence struggled to recover in 2014 following the consumption tax (VAT) increase earlier in the year which resulted in consecutive GDP declines in the second and the third quarters of 2014. On the contrary the corporate sector maintained resilience off the back of the devaluation of the currency and continuous quantitative easing. Aggressive monetary easing also created a tailwind for asset prices and the real estate market.
The real estate investment market remained strong in the fourth quarter of 2014, indicating a 27% increase from the same period the previous year. This led to a further compression of real estate cap rates in the period. J-REIT’s share in the transaction activities decreased to below 30% in the second half of 2014, while global managers increased its profile by making a number of sizable investments in the period.
Source : Deutsche Asset & Wealth Management
