A research produced by DTZ
Total commercial real estate investment transactions (excluding residential and hotel properties) decreased by 48% to JPY699 billion in Q2 2014 from JPY1,333 billion in Q1 2014. This sharp quarterly decline was largely the result of the exceptionally significant volume recorded in Q1, which was driven by the fiscal year-end effect with a couple of mega deals over JPY100 billion.
The drop in this quarter was also due to the emergence of fiercer competition which has prevented some investors from deploying their capital as there are only a limited number of investable assets in the market. Moreover, the amount of public offerings conducted by J-REITs dropped by 38% y-o-y in Q2 2014, resulting in a reduced volume of J-REIT activities within the quarter. J-REIT is always the main market driver in Japan. J-REITs rely on public offering and issuance of investment units for their source of capital to purchase properties.
Source : DTZ (Groupe UGL)