Welcome to Issues in Japan.
This time I would like to share some of the article contents of the NLI Research Institute, with the title of “Real Estate Market Survey Results” released on Feb. 02, 2022.
Summary
In order to understand the current status and future direction of the real estate market, the 18th "Real Estate Market Survey" was conducted among practitioners and experts in the field of real estate (120 respondents, 59.7% response rate).
1. With regard to business confidence in the real estate investment market as a whole (property transactions, new development, and fund formation), more than 60% of respondents answered "positive" (the sum of "good" and "somewhat good"), about 30% answered "usual or normal"), and slightly less than 10% answered "negative" (the sum of "bad" and "somewhat bad"). In the previous survey, the respondents were divided in their views on business confidence, but this time, more than 60% of the responses were positive.
2. Regarding the outlook for business conditions six months from now, 60% of respondents answered that they would remain unchanged. The number of respondents who answered that business conditions will improve (the sum of those who answered "improve" and "slightly improve") exceeded those who answered that they will worsen (the sum of those who answered "worsen" and "slightly worsen"), indicating a slightly more optimistic outlook.
3. As for investment sectors (including securitized commodities) where price increases and market expansion are expected in the future, the most common response was "logistics facilities," followed by "industrial facilities (data centers, etc.)," "rental condominiums," and "energy-related facilities (solar power generation facilities, etc.).
4. As for investment areas where prices are expected to rise and the market is expected to expand in the future, the most common answer was "the five central wards of Tokyo (Chiyoda, Chuo, Minato, Shibuya, and Shinjuku wards)," followed by "the wards of Tokyo (excluding the five central wards)" and "Fukuoka City."
5. Regarding risk factors that may affect the real estate investment market, the most common answer was "the domestic economy," followed by "the U.S. and European economies," "the spread of the new coronavirus," and "interest rates." Compared to the previous survey, concerns about "the U.S. and European economies," "interest rates," "construction costs," and "the Chinese economy" increased.
6. More than 60% of respondents answered that real estate prices in Tokyo will reach their peak this year or next year.
That’s all for now.
I have shared some of the article contents of the NLI Research Institute, with the title of “Real Estate Market Survey Results” released on Feb. 02, 2022.
For detailed information and for your assurance, please refer to the following.
https://www.nli-research.co.jp/report/detail/id=70098?pno=1&site=nli
NLI Research Institute, Feb. 02, 2022
Thank you for your visit and your interest.
