Japan

One factor is the ‘2024 problem’.

New supply is expected to hit 1.0 million sqm this year.

There will be over 4 million sqm of new supply.

Hyperscale developments are expected to materialise.

The vacancy rate hit 6.2% in the first half of the year.

Bulk of the supply will be from Mori Building’s two developments.

Rental growth is a significant contributing factor. 

The sizeable supply expected in 2025 will be sandwiched between quiet years.

Savills expects the market to remain stable over the short to medium term.

Thanks to a strong recovery in accommodation demand.

These will have a combined GFA of over 13,000sqm. 

Net absorption totalled 116,000sqm in Q1.

The last time vacancy rates were above 8% was in Q1 2016.

Only one new project was completed during the quarter.

Find out how much rents cost, where the units are, and who the tenants are.

Units could cost at least JPY1 billion or over USD7.3 million.