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PRACTICE PAPER: Commercial property investment in Tokyo

Shunichi Maekawa (Shunichi Maekawa is a Lecturer, Faculty of Real Estate Sciences, Meikai University), 1‐13‐33 Shinmachi, Kokubunji, Tokyo,185, Japan)

Journal of Property Valuation and Investment

ISSN: 0960-2712

Article publication date: 1 May 1996



In the past, the profit from property investments was always higher than that from other assets, because of the expectation of high rates of increase in land prices. However, as Japan′s economic growth has been slowing down, these circumstances for property investments have changed. The income yield rate of commercial property investments in Tokyo decreased sharply from 1982 to 1987 because of the sharp increase in land prices. Though commercial land prices in Tokyo have decreased since 1992, the income yield rate is too low because of decrease of office rents. If the income yield rate does not increase, demand for commercial property investments will not recover because a high rate of increase in land prices cannot be expected in the future.



Maekawa, S. (1996), "PRACTICE PAPER: Commercial property investment in Tokyo", Journal of Property Valuation and Investment, Vol. 14 No. 2, pp. 48-61.




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