Property Transactions in Japan Jump 50% on Abenomics, JLL Says

Property transactions in Japan jumped 50 percent in the first half of 2013, heading for the most in five years, amid efforts by Prime Minister Shinzo Abe to boost the economy, according to Jones Lang LaSalle Inc. (JLL)

Sales of offices, warehouses and retail space rose to $20.9 billion in the first six months from the same period a year earlier, according to an e-mailed statement from the broker. That compares with a 20 percent drop in sales in China, a 10 percent increase in Australia and 43 percent gain in Germany, it said.

Abe’s pledge to end 15 years of deflation and the Bank of Japan’s unprecedented monetary easing policy have lifted business and consumer confidence in the world’s third-largest economy. The approach, dubbed Abenomics, has helped boost property transactions in Japan.

Deals in Japan will rise to as much as 3.5 trillion yen ($35 billion) this year, the most since 2008, according to Takeshi Akagi, a director in Tokyo for the Chicago-based broker.

Elsewhere in the world, transactions in the U.K. rose 4 percent in the first half, while property deals in France gained 6 percent, the statement showed.

J-REITs alone will probably acquire a record 2.5 trillion yen of properties this year by raising about 900 billion yen through public offerings, said Yoji Otani, a Tokyo-based analyst at Deutsche Bank AG.

The Tokyo Stock Exchange REIT Index has gained 25 percent so far this year, extending its 34 percent gain in 2012.

To contact the reporter on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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