Japan

Japan now has a record supply of new hotel rooms that will be left empty as international visitors decline 76.3% over the first half of 2019.

Vacancy rate in Fukuoka is the lowest among all regions at 0.3%.

Meanwhile, occupancy should hold at the lower end of the 96%-98% range.

Well over 95% of the supply has already been filled or pre-leased, whilst existing supply has little vacancy.

Grade A office rents inched up by a mere 0.2% in Q2 2020.

This mild pullback could be the initial blow of a bearish multi-family leasing market, according to Savills.

Tokyo office rents rose both YoY and MoM but vacancy increased for the fifth straight month to 2.77%. By area, Minato saw the largest vacancy increase (to 3.52% from 2.33%) and Chiyoda saw the smallest increase (from 1.39% to 1.93%). Inside we provide additional details by area and comment on investment implications (for Tokyu Fudosan, Mitsubishi Estate, and Sumitomo Realty).