Business performance especially manufacturers, sustained by a weakening JPY, have significantly improved witnessed by the latest quarterly Tankan Survey. As such, stock prices and J-REITs index have robustly risen. Going forward, investment activities are forecast to filter down to the manufacturing sector.
With regards to the property investment markets, the number of properties for sale remains limited, but buyers can’t competitively bid higher price than their underwriting scenarios.
As a result, transaction volume slowed in Q4. The markets take a rest and stay as healthy as just over 5% yields.
Nevertheless, reflecting brisk markets over the course of the year, 2013 annual volume in each sector respectively marked the highest volume since the global financial crisis. Going forward, transaction volume is expected to move on as a number of sellers are anticipated to gradually feel urgency to sell.