Strong office rental growth keeps US investors in Japan despite rate increases

Expectations of interest rate increases of up to 2.25 per cent in Japan have not deterred the influx of US capital into the local real estate market due to healthy rental growth of offices in prime locations, with analysts saying that investors have simply become more selective within the market. The Bank of Japan implemented two 25-basis-point rate increases – one in June and another in September – bringing its benchmark policy rate to 1.25 per cent. This marked the highest level since 1995,...