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Fujitsu is joining the exodus of companies moving their main offices out of Tokyo as remote work catches on in Japan and reduces the need to maintain expensive office space. It said the move is the result of a review of the company’s office needs now that so many employees are working from home. The tech giant announced on Sept. 22 that they will relocate their HQ from Minato-ku to Kawasaki city by the end of September next year.
Singapore became the biggest investor in Japan’s real estate sector this year, lured by the yen’s weakness and growing demand in logistics and hospitality industries. Inflows from the city-state totaled almost $3 billion so far in 2023, followed by investors from the US, Canada, and the United Arab Emirates.
A Tokyo-listed REIT sponsored by property giant Mitsui Fudosan has acquired a portfolio of three hotels in Japan for JPY 3.1 billion ($21.2 million).
The J-REIT picked up the three-asset portfolio’s highest-valued property, the 128-room Smile Hotel Okinawa Naha, the 97-room Smile Hotel Matsuyama on Shikoku, and the 106-room Smile Hotel Nishi-Akashi west of Kobe.
Mitsubishi Estate was chosen by Yokohama City as the developer of the theme park in the city of Yokohama, that will rival the size of Tokyo Disneyland. It is scheduled to open around 2031, with an expected annual visitor count of 12 million people.
Japan’s akiya problem has evolved into an unexpected opportunity. The country’s aging and diminishing population have led to a surge in abandoned houses, enticing foreign buyers drawn to Japanese culture and unable to afford similar properties in their home countries due to soaring prices and inflation.
Robust demand for lodging by visitors and rising prices create an ideal scenario for investment. In fact, foreign investors have spent US$2 billion on hotel deals in Japan so far in 2023, the most compared with any other sector in Asian commercial property, according to MSCI Real Assets.