News roundup: Japan commercial property investment volume up by 7 percent, and other news

For PropertyGuru’s real estate news roundup, Japan’s investment volume in commercial real estate for the first quarter of 2024 surged by 7 percent, totaling JPY1.439 trillion. In other headlines, the outstanding bonds of real estate enterprises totalled VND350.88 trillion (USD13.79 billion) as of the end of March, according to a recent report of Vietnam’s Ministry of Finance. And has the RTS Link heightened interest and increased property demand and value in Malaysia’s state of Johor Bahru?

Japan’s commercial property investment volume jumps 7 percent in Q1 2024

Based on fresh data from CBRE, The World Property Journal reports that Japan’s investment volume in commercial real estate for the first quarter of 2024 surged by 7 percent year-over-year, totaling JPY1.439 trillion. Although there was a decrease in foreign investment, domestic acquisitions compensated with an upward trend. Despite a prevailing cautious stance among overseas investors, notable large-scale transactions were noted.

Breaking down by asset category, the logistics sector witnessed the most significant upswing, with a 113 percent YoY increase in investment volume, reaching JPY371 billion, propelled by several major transactions. Office investment volume saw a 15 percent YoY rise to JPY742 billion, primarily fueled by numerous J-REIT transactions. Conversely, a decrease in portfolio transactions within the residential sector led to a 31 percent decline in investment volume for this asset class compared to the same quarter of the previous year, amounting to JPY131 billion.

Outstanding bonds of real estate enterprises in Vietnam amount to VND350.88 trillion 

The outstanding bonds of real estate enterprises totalled VND350.88 trillion (USD13.79 billion) as of the end of March, according to a recent report of the Ministry of Finance.

The report submitted to the National Assembly’s Economic Committee on real estate market management and social housing development in 2015-23 period, showed that the total outstanding corporate bonds were estimated at around VND1 quadrillion.

According to VietnamPlus, during the period, 330 real estate companies issued bonds in the domestic market worth a total of VND726.335 trillion with an average yield of 10.15 percent per year.

Is the RTS Link Project affecting property demand in Malaysia’s Johor Bahru state?

According to data released by the National Property Information Centre (NAPIC), Johor Bahru has shown a downtrend in residential overhang. The state has had the highest overhang in Malaysia in 2022, but this has now changed. Johor’s overhang fell 19.6 percent to 4,228 in 2023, from 5,258 previously. Has the Rapid Transit System (RTS) Link unlocked heightened interest in lands along the link, and increased property demand and value in Johor Bahru? Find out from iProperty Malaysia.

The Property Report editors wrote this article. For more information, email: [email protected].