TRANSACTION VOLUME RISES Y-O-Y FOR SECOND CONSECUTIVE QUARTER

  • Commercial real estate transaction volume in Japan rose 14% y-o-y to JPY 772 billion in Q3 2019, a second consecutive quarter rise. J-REITs accounted for the largest share of acquisitions at 42%, although their transaction volume was largely unchanged y-o-y. Other domestic investors saw the biggest increase at +80% y-o-y, while overseas investors fell 25% y-o-y. 

INVESTOR SENTIMENT RISES FURTHER FOR LOGISTICS

  • CBRE's latest Tankan Survey conducted in October 2019 found that the Diffusion Index (DI) for multi-tenant logistics facilities (Greater Tokyo), the DI improved in all categories, except for "trading volume" and "sales prices" (for which more respondents expect no change). DI for "vacancy rate" improved for the sixth quarter running, and for "rent" for the fourth quarter running.

LARGE DEALS EXPECTED IN Q4 MEANS FULL-YEAR 2019 VOLUME MAY EXCEED 2018

  • Q1-Q3 cumulative volume rose 6.7% y-o-y to JPY 2.5 trillion. While the number of transactions was down 12% y-o-y, the number of relatively large transactions of JPY 10 billion or greater increased by 17%, leading to higher volume. Several large deals are expected to be completed in Q4, meaning that full-year volume is likely to exceed the 2018 level.