05 settembre 2008

"IPD today released its 2007 results for the performance of the Japanese commercial property market. Total Returns fell to 12% at the All Property level compared with 13.8% in the year to Dec 31st, 2006. This confirms the figure the IPD Japan Monthly Indicator has been predicting for the year-end result since mid April. The Monthly Indicator is based on a subset of Annual Index funds valued twice a year. Capital growth slowed to 6.6% from 8.0% in the preceding 12 months and income return remained relatively stable at 5.1% compared with 5.4% in 2006.

Retail properties, which account for 19% of the Japanese annual databank, suffered worst with total returns sliding to 8.5% from 12.6% in 2006. Offices and residential properties were only marginally impacted by slowing global growth earning investors 15%, down from 16%, and 6.8% from 7.0% the year before.

For the first time IPD this year reported industrials performance figures showing a total return of 9.7%. The inclusion of industrial properties as a sector in its own right has been possible as the result of growth in the databank and number of funds participating in IPD’s services. The IPD Japan databank now covers 1,976 properties, up 28% from 2006. The total capital value of properties included in this index is YEN 8.9bn.

Toshiro Nishioka, Director of IPD Japan, said: “2007 can be seen as another good year for property investment in Japan in terms of the total returns. Property has outperformed both equities and bonds. However, it should be noted that firstly, performance seems to have peaked during 2006 and weakened through 2007. Secondly, there is a big disparity in performance of property for different areas of Tokyo let alone across the whole of Japan. It will therefore be ever more crucial for the investors and fund managers to be selective in where they place their money.”(CS della Società)