Singapore investors pile into Japan investment properties on attractive yield spread

SINGAPORE-BASED investors are making a beeline for Japanese real estate, as low borrowing costs push up the market’s yield spread and increase its relative attractiveness.

Almost US$3 billion worth of real estate assets were purchased in the first eight months of this year, a Knight Frank report indicated, up from US$977 million in the same period last year.

Big spenders include Singapore’s sovereign wealth fund GIC, which bought six logistics facilities for US$800 million; Mapletree Logistics Trust, which acquired six warehouses for US$480 million; and real estate group CapitaLand Investment (CLI), which purchased six multifamily assets in Osaka for S$141.4 million.