Japan’s commercial property sales more than doubled last year to 3.54 trillion yen ($34 billion), the highest since 2007, driven by real estate investment trusts acquisitions, according to DTZ Research.
Property sales climbed to near the record high of 3.61 trillion yen in 2007 and rose from 1.72 trillion yen in 2012, Kayoko Hirao, head of Japan research at broker DTZ wrote in a report today. Commercial properties include office buildings, shopping malls and distribution centers.
Tokyo’s real estate market is recovering as Prime Minister Shinzo Abe pushes for growth in the world’s third-largest economy. The Bank of Japan’s monetary easing policy helped drive the Tokyo Stock Exchange REIT Index by 36 percent last year, giving the trusts more room to raise equity and acquire properties.
“A real estate market turnaround in 2014 is also expected to positively impact on capital values, leading to an overall increase in volume,” Hirao said in the report.
J-REITs raised a total of 1.19 trillion yen in 2013 through initial share sale and public offerings, according to data compiled by Bloomberg.