The Tokyo Olympics could be a “show window” for the city’s real estate
The Olympics’ global TV audience provides an opportunity for Tokyo’s real estate to showcase its wares to the world
Despite concerns over hosting the Tokyo Olympics, investors suggest carrying it on as it is helping fuel expectations for Japan’s real estate investment trusts (J-REITs), reported The Japan Times.
According to an analyst, the event provides a “show window” for Tokyo’s real estate, whether an audience is allowed or not. Along with the games, the increasing pace of Japan’s COVID-19 vaccination campaign is also helping boost expectations for J-REITs.
Eiji Kinouchi, Daiwa Securities Co. analyst, said, “Should the Olympics and Paralympics move forward with the help of vaccines, it’s highly likely that money will flow into J-REITs globally – even if the games are held without spectators.”
Seeing that the Olympics is starting in less than 50 days, the debate around the merits of the event continues.
Japan’s vaccine rollout is finally picking up momentum and giving hope to Olympics fans, after months of slow progress and pressure on Japanese stocks.
More: Japan government implements reporting requirements for foreigner-transactions
While foreigners won’t be attending the games, the global TV audience is estimated at more than 3 billion viewers, offering a golden opportunity for Tokyo’s booming real estate sector to display itself to the world.
“Historically, countries that host the Olympics and Paralympics see their REIT indexes gain for two years, starting from the year they host the games,” Kinouchi said. “It could be due to a ‘show window effect,’ as investors worldwide see the city rebuilt beautifully on screen,” he said.
The Tokyo Stock Exchange REIT Index has been experiencing a positive outlook, booking gains every month this year. The index extended that advance on Thursday, closing the trading session at a peak since the pandemic-led crash last February.
Recommended
Why everyone is moving to Selangor and Johor: Malaysia’s real estate comeback
Malaysia’s upturn in fortunes is especially prevalent in secondary destinations such as Selangor and Johor
Penang’s silicon boom: How the US-China tech war is supercharging local real estate
Penang’s booming semiconductor industry has created ripples within the local real estate sector
New leader, new opportunities: How Hun Manet is shaking up Cambodia’s real estate game
Hun Manet is overseeing decent economic growth and widening access to the country’s real estate market for foreigners
Singapore embraces inclusive housing reforms amid resilient demand
The Lion City’s regulatory strength continues to exert appeal for international investors