Our Japan Property Market Report for 2022
2022 was a year of turmoil for markets, with interest rate rises, high inflation, and ongoing supply chain disruptions. Japan did not suffer to the same extent, with interest rates and inflation remaining low. The stable domestic conditions favored the real estate market with prices continuing to rise throughout the year.
Please feel free to view or download the PDF of our annual Japan Property Market Report, linked below.
Luxury resort villa project planned for Atami
On December 16, Acao Spa & Resort announced plans for a 16 billion Yen (US$117 million) oceanfront luxury resort and artist colony in Atami.
Expected rental yields on Tokyo real estate assets hit 23-year low
Investors are expecting lower rental yields from office and residential assets in Tokyo. According to the Japan Real Estate Institute’s investors survey published on November 2022, the expected rental yield on Class A office space in Tokyo’s Marunouchi and Otemachi district was 3.2% as of October 2022, down from a 3.3% expected yield in April.
Daiwa sells resort hotel unit
On December 8, Daiwa House Industry announced the sale of its resort hotel business to G.K. Ebisu Resort. The sale price of the shares was 55.6 billion Yen (approx. US$407 million).
Atami hotels sold to US fund
The landmark Hotel New Akao in Atami has been sold to Shirakami, an affiliated company of Fortress Investment Group. The sale is for Hotel Acao Annex (former Hotel New Akao) and Hotel Acao (former Royal Wing) and approximately 7% of Acao Spa & Resort’s landholdings.
Ultra-luxury hotel for Torch Tower
On November 8, developers Mitsubishi Estate and Tokyo Century Corporation announced that Dorchester Collection will be operating an ultra-luxury hotel in the 390-meter tall Torch Tower near Tokyo Station. The hotelier is owned by the Brunei Investment Agency and operates The Beverly Hills Hotel, Plaza Athénée in Paris, and The Dorchester in London, to name a few.
Mandarin Oriental Hotel coming to Takamatsu City
The Mandarin Oriental Hotel Group is planning to open a new hotel in Takamatsu City, according to Kyodo News. The opening is scheduled to coincide with the 2025 World Exposition to be held in Osaka.