Tokyo’s Real Estate Market: Stable But Forgotten
During the recent Japan Investment Briefing, analysts say that despite reports pointing to a possible comeback, Tokyo’s property market is not going to show an explosive growth any time soon. Analysts also add that Tokyo has a strong and stable market that has been largely forgotten.
According to Professor Lawrence Longua, director of New York REIT Centre, Tokyo like the US and other European and East Asian markets, has gone unnoticed as a source of real estate investment opportunities since the economic crash in the 80s. He adds that the bursting of the bubble in 1989 greatly affected the economy and worse, made Japan disappear and become irrelevant in the world market. Also because of the changing economy, Japan found it difficult to set up a comeback.
Longua pointed out that Tokyo is in a much stronger economic and demographic position than other parts of Japan and is home to 48 top 500 global companies. In fact, this year, the nation has experienced impressive growth, with its GDP forecast up 3.1%, according to Deutsche Bank. However, Longua said that a most recent data point to a downturn. But economists say that the market would experience further improvement in the second half of 2013, keeping everything stable. Europe’s forecast on the other hand, downgraded from 1% growth for 2012 to 0.1%.Photo Credits: personalseoblog