Japan Investment ViewPoint - COVID-19s Impact on Real Estate Investment Strategies
Following the lifting of the nationwide state of emergency on May 25, a gradual resumption of investor activity has been observed. With expectations for an economic recovery, it would appear that an increasing number of investors are looking to resume investing, provided that the necessary countermeasures are in place.
Ample investment funds remain available. However, as the gap in pricing expectations between buyers and sellers continues to widen and asking prices for investment properties are unlikely to come down any time soon, the number of deals being concluded is anticipated to remain low in the short-term.
According to the survey, top three of the most attractive asset types for investment are logistics, residential and office. There is a notable trend among investors to prioritise asset types providing stable cashflow as they seek to mitigate the impact of economic volatility.
This ViewPoint by CBRE Japan assesses the impact of the pandemic on real estate investment in Japan and identifies each of the primary asset types in terms of major factors anticipated to exert an impact on future investment strategies.