Japan’s REITs pose attractive investment amid weak lending and exchange rate

2022.11.21 13:17:01 | 2022.11.21 13:22:31

Tokyo View [Photo by Han Joo-hyung]이미지 확대

Tokyo View [Photo by Han Joo-hyung]



South Korean investors are advised to take interest in Japanese property market amid price appeal from market slump and the Japanese yen at its weakest in decades.

According to Real Capital Analytics (RCA), a data tracker in commercial property deals, net capital inflow to the Japanese property market exceeded the previous year’s records, with 21.6 billion yen ($154 million) in retail housing, 90.5 billion yen in hospitality, and 218.6 billion yen in rental housing.

Foreign capital has been lured in the Japanese property market where lending and exchange rates are exceptionally low.

“Japanese REITs are popular among overseas investors due to high dividend payouts. They are more attractive as investors can expect foreign exchange gains when the yen rebounds,” said Jang Seung-woo, a researcher at Daishin Securities.

Hospitality REITs would be noteworthy for the next six months, according to the securities firm. “Hospitality REITs will likely benefit from the post-pandemic reopening,” added Jang.

The number of foreign travelers to Japan amounted to 498,600 in October, up 290,000 from the previous month and 22.5 times higher than the same period of last year, according to the Japanese Tourism Agency.

By Kim Geum-yi and Jenny Lee

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