MFIA Quarterly 4th Quarter 2024 28 March 2025
- The Japanese economy is stagnant but not in recession due to decline in demand caused by rising prices and slowdown in recovery of the Chinese economy.
- The market for for-sale real estate in Japan has recovered from the sudden slowdown caused by the impact of COVID-19, and the supply-demand balance has been barely maintained due to decline in demand caused by rising prices and decrease in supply accompanying rising costs despite rising interest rates.
- Hotels and retail properties in Japan continue to thrive following recovery from slowdown due to the impact of COVID-19, as the weak yen attributable to differences in monetary policy and other factors has stimulated inbound demand.
- In the rental market for office buildings in Japan, vacancy rates continue to decline slowly, and rents continue to rise gradually with some exceptions.
- Although transaction prices have been maintained, both the number of transactions and their amounts are slumping due to a decline in properties for sale, with some investors turning to a cautious stance.
- Comparing the economic growth rates and inflation rates of major advanced countries and developing countries, the former show similar fluctuations depending on the country and time period, while indicators for the later show diverse trends.
- Among the economic growth and inflation rate indicators of advanced countries, only Japan's inflation rate shows a clear downward shift.
- Among the major countries compared, Japan‘s population has been on a long- term downward trend as natural decrease has not been fully compensated for by social increase.
- The populations of major countries continue to grow due to social growth, but the US population is thought to be rapidly increasing, including through illegal immigration, and the economic growth rate is expected to be swinging upward significantly.
