Japan

"Even amidst historically high supply levels, the logistics market remains strong as tenant demand for conveniently located, high-specification facilities is on the rise. Greater Osaka in particular has been improving performance since the market was disrupted by oversupply in 2017. Property investors have generally adopted a more bullish attitude towards the sector, and investment volumes appear set to rise in the second half of 2019."

"Vacancy remains extremely low as tenants compete for limited available space, and average rents continue to march higher. Rental growth is most pronounced in offices with larger floorplates, which are ideal for workplace consolidations and inter-departmental collaboration"

"Residential assets in central Tokyo remain in high demand. As long as the economy continues to grow steadily, rents should also continue their gradual rise."

"Regional office markets continue to perform well and are attracting more attention from investors. As expected, low tenant turnover has cooled overall rental growth in some top submarkets, though other areas are gaining ground."

"Average rents across the C5W have continued to push higher in Q1/2019, with Shibuya seeing particularly strong YoY growth. As the volume of supply abates somewhat this year, and preleasing is strong, rental growth seems likely to continue through 2019."

"Tokyo rents continue to rise steadily as positive net migration bolsters the urban population, average incomes rise, and a steady supply of new stock comes online. Outer wards are posting above-average growth."

"Notwithstanding a wave of new supply, the logistics market has seen stronger-than-expected demand in 2018 marked by sound leasing activity. Supported by positive prospects, interest in this sector remains strong among investors."