Big in Japan: RE funds have poured $15B into the market since 2014

Investors expect their yields will remain comparatively high relative to government bonds

New York Weekend Edition /
Apr.April 14, 2018 01:45 PM

(Credit from back: Pixabay, Nesnad)

Japanese real estate is racking up billions from foreign investors — and has been for years.

Between January 2014 and September 2017 alone, real estate funds have sunk about $15 billion into Japanese property markets, according to Bloomberg, with expectation that, thanks to the Bank of Japan, investment yields will stay high relative to government bond.

The staggering interest is consistent with the moves of Norway’s sovereign wealth fund, the largest in the world, and its property group, Norges Bank Real Estate Management; Norges has set aside nearly $1 billion for investment in Japanese real estate. In 2017, over $10 billion in foreign real estate investment poured into the country — more than triple the amount invested in 2016.

On the flip side, Japanese investors are increasingly looking to U.S. real estate as viable investments, in light of the U.S. rising interest rates, as The Real Deal reported. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Clockwise from top: David Bistricer of Clipper Equity, Joseph Chetrit a rendering of the Gramercy Square condominium and Robyn Sorid of G4 Capital Partners (Photos via Clipper Equity, Getty, VUW, G4)

Chetrit, Bistricer’s Gramercy Square condo lands $207M loan

Chetrit, Bistricer’s Gramercy Square condo lands $207M loan
One Madison Avenue and Marc Holliday (Photos via SL Green)

SL Green snags $1.25B construction loan for One Madison Avenue

SL Green snags $1.25B construction loan for One Madison Avenue
11 Penn Plaza and 120 Wall Street (VNO, Wikipedia Commons)

Manhattan’s top real estate loans post second best month since March

Manhattan’s top real estate loans post second best month since March
Square Mile Capital CEO Craig Solomon and The Real Deal's Hiten Samtani

WATCH: “It’s going to take longer, and it’s going to cost more”: Craig Solomon on the real estate capital stack

WATCH: “It’s going to take longer, and it’s going to cost more”: Craig Solomon on the real estate capital stack
OneTitle's Seth Brown (iStock)

OneTitle set out to change the title industry. Now it’s out of business

OneTitle set out to change the title industry. Now it’s out of business
The Scribner Building at at 597 Fifth Avenue and Joe Sitt of Thor Equities (Wikipedia Commons)

Thor delinquent on $105M loan at 597 Fifth

Thor delinquent on $105M loan at 597 Fifth
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...