According to the Japan Real Estate Institute, the real estate transaction volume across Japan for the first half of 2018 was 2.1 trillion Yen (approx. 18.5 billion USD).
In the first half of 2007, during the previous market peak, the transaction volume reached peaked at 3 trillion Yen before dropping to 1 trillion Yen after the global financial crisis in the second half of 2008. Between 2013 and 2015, the half-yearly transaction volume ranged from 2 ~ 2.6 trillion Yen. In the second half of 2015 it dropped to 1.8 trillion Yen, but has since recovered.
Transactions in central Tokyo’s 5 wards saw an increase towards the end of 2017 as both J-REITs and foreign institutional funds began to re-focus their attention on prime assets providing stable returns in the city center. Almost 40% of the total volume was for property located in Tokyo’s 5 wards, almost double the share seen in the first half of 2017.
Acquisitions by foreign funds peaked at 800 billion Yen in the first half of 2007. By the second half of 2017 the total volume recovered to 720 billion. The first half of 2018 saw a sharp drop to just 310 billion Yen (approx. 2.7 billion USD).
*The data only includes transactions publicly reported by J-REITs, the Tokyo Stock Exchange, the Nikkei Business Publication and other public reports where the sale price has been indicated. Since the public reporting of sale data is not always mandatory, this may not represent all transactions that occurred.
Source: The Japan Real Estate Institute, September 14, 2018.