Viewed as a stable asset class that is uncorrelated to the pandemic-related risks, Japan’s multi-family housing sector provides resilient income and attractive risk-adjusted returns with rising demands, says real estate private equity firm Q Investment Partners (QIP) co-founder and CEO Peter Young.
Due to Japan’s stable inflationary environment and reliable macroeconomics, the multi-family housing sector has been seen as very attractive to institutional and sophisticated investors alike, says Young, citing Blackstone and Allianz Real Estate as examples.
He adds: “In Singapore, the rising inflation is directly correlated with material rental growth and capital value appreciation. Due to this, investors are looking for real estate opportunities and adjusting their portfolios to hedge against market risks, including inflation. This is why the real estate opportunities in Japan are attractive through the investors’ lens.”