Increased investment flows and improved leasing activity have buoyed the Japanese property market since the massive earthquake and tsunami that struck earlier this year, according to Christian Mancini, chief executive of Savills in Japan.
The disasters did depress activity in the months that followed the disasters in March but Mancini said: “Transaction volumes have recovered. Anecdotally we see more and more groups of people disembarking planes at Narita airport from Europe, North America and other parts of Asia that are historically investors in the property market. Their enthusiasm seems to have been restored.
“People like GE and Aberdeen. A number of the German open ended funds have come back, as well as a substantial amount of interest from Singaporean funds and the ever present domestic Japanese interest.”
But the events have seen occupier demands shift away from bottom-line considerations to durability concerns. “The quake introduced an emotional component where given concerns around life safety and the robustness of the build infrastructure; people are willing to pay a premium. Anecdotes suggest that at the upper end of the grade A space some of those buildings have enjoyed as much as 20% increases on the achievable rent post the quake,” said Mancini.
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damian.wild@estatesgazette.com
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