Tokyo seen as No 1 market in Asia Pacific for property investment in 2014
Japanese capital has emerged as magnet for investment in wake of major reforms introduced with aim of boosting economy
Tokyo is being seen as the top destination for real-estate investment in the Asia-Pacific region next year, according to an industry report by the Urban Land Institute and PricewaterhouseCoopers.
The city emerged as an investment magnet soon after the introduction of dramatic economic reforms aimed at boosting the economy, according to the Emerging Trends in Real Estate Asia Pacific investment prospects survey.
The report reflects the views of 250 people who completed surveys or were interviewed. The interviewees and survey participants include investors, fund managers, developers, property firms, lenders, brokers, advisers and consultants.
Transaction volume in Tokyo picked up significantly this year and, with the success of the stimulus programme yet to be determined, buying is expected to continue next year, the report shows.
Shanghai ranked as the second most attractive market for investment.
Despite falling rates of capitalisation and stagnant rental growth, real estate in the city continues to draw international investors because Shanghai is widely perceived as a well-known, low-risk market for those who are unwilling to venture into lesser-known cities, according to the report.