Japan’s macro economy showed positive signs after it struggled to recover amid the consumption tax (VAT) hike in 2014. A healthy growth in corporate earnings begets an improvement in employment and wages, and this should result in sustainable consumption growth in coming years. On the back of the devaluation of the currency, the stock market reached its highest level in the last fifteen years, with real asset prices benefiting from the expansionary monetary policy.
The real estate investment market remained very active in the first quarter of 2015. This caused a further cap rate compression in Tokyo with capital now flowing into Osaka and other major cities to hunt higher yielding assets. Both J-REITs and global managers remained active in the period while the hotel and healthcare sectors emerged as hot targets among investors.
Source : Deutsche Asset & Wealth Management