Capital moves

CAPITAL is ever watchful for a route to higher returns, and lately, Singapore-based real estate players have trained their sights on Japan. Low borrowing costs and a weak yen have widened the market’s yield spread in marked contrast to other regions, sending investors piling in. 

Almost US$3 billion worth of real estate assets in Japan were acquired in the first eight months of this year, according to Knight Frank, up resoundingly from US$977 million in the same period last year. The Japanese commercial market is bustling. Big buyers include Singapore’s sovereign wealth fund GIC, Mapletree Logistics Trust, the CapitaLand group, and City Developments Ltd. Samuel Oh finds out what’s spurred their interest, and how prospects look.

In Japan and other Asian markets, prime residential property is also offering net yields that outpace Singapore. Ry-Anne Lim looks at how regional prime markets stack up, but be wary of what a high yield offers.