IPD has released the results for its Japan Monthly Indicator for April 2008. The results show that the slowdown in Japanese commercial real estate has continued apace. Indicative returns to the end of that month show a total return of 9.9%, down from 10.5% in March. At 4.7% year-on year, capital growth is now at its lowest at least since October 2005.
The All Property return for calendar year 2007 was 12.0%, virtually unchanged from the estimate shown last month. This figure combines an income return of 5.1% and a capital return of 6.6%.
Sector level 2007 returns can now also be shown since the proportion of properties with full valuation records has now reached 100%. In 2007, the rate of return on Retail property was down to 8.3%, Offices recorded 14.9%, and Residential property was down slightly to 6.9%.
Kevin Swaddle, IPD's Director for Asia, said: "This month's figures show a continued slowdown that we've seen over the last six months with the rate of capital growth coming down by about 0.5% each month. It is notable that capital growth is below income return for the first time this cycle."