Tokyo real estate market booming ahead of Olympics
Ith just two years to go until the Japanese capital hosts the summer Olympics in 2020, the city’s real estate market is enjoying unprecedented growth.
Rising rents and an inflow of foreign capital are driving up real estate prices in the city, and many properties are being sold for considerably more than their value at the time of purchase. One developer has seen the market value of its assets rise to more than double their book value.
But analysts have warned of the possibility of a post-Olympic crash, and real estate companies are faced with the challenge of capitalizing on the boom while hedging against the risk of a downturn.
Recent talk in the industry has focused on the stirring of a sleeping giant.
Norway’s government pension fund, one of the world’s largest sovereign wealth funds, entered the Japanese market amid much fanfare two years ago, but made little in the way of notable investments.