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Japan Q2 Real Estate Transaction Volume Down 25%, Office Transactions Fell 70% Year-On-Year; Logistics Up

Sept 4, 2023 -Japan’s real estate transaction volume in the second quarter (April to June) of 2023 reached 547.7 billion yen (US$3.8 billion], down 25% year-on-year, according to data compiled by Nikkei Real Estate market report. The number of sales transactions was up 14% year-on-year at 361.

A total of 38 properties worth 219.3 billion yen (US$1.5 billion) were acquired by REITs in the second quarter. This volume is approximately 2.4 times the amount in the same quarter of the previous year. Four REITs, including three logistics REITs announced public offerings in the second quarter and raised about 72.3 billion yen (US$500 million). Non-REIT transactions nearly halved from the same quarter of the previous year to 328.4 billion yen ($2.3 billion).

Logistics facilities accounted for approximately 262.7 billion yen (US$1.8 billion), nearly half of the total transacted volume. This number is also more than ten times the volume in the year-earlier period.Sovereign wealth fund GIC acquired six logistics facilities from Blackstone Group for more than 100 billion yen ($690 million) in April.

On the other hand, the transaction volume of office buildings decreased by 70% year-on-year to 105.4 billion yen ($730 million], marking the lowest quarterly figure in ten years.