Kazuo Tanabe, president of Chuo Mitsui Trust Holdings, Japan's sixth largest bank, said that foreign buyers are showing a lot of interest in acquiring Japanese property.
'We are seeing more deals as prices bottom out and investors think that it's time to buy,' he said. Property transactions being negotiated now are up as much as 30% from last year, added Tanabe, as Japanese firms and individuals also seek to buy.
Chuo Mitsui, which specializes in asset management and real estate, is forecasting a return to profit this year as credit markets thaw and demand for property-related services increases. Tanabe said the outlook is also good for Nagoya, Osaka and Fukuoka as property transactions are increasing in these cities.
Other experts are also confident. 'Real estate deals picked up in the first three months of the year and now we're seeing that accelerate. Property prices have bottomed out in prime locations so we can expect them to climb as transactions increase,' said Yoji Otani, an analyst at Credit Suisse Securities Japan. Ltd.
He added that it is firms are driving the market but overseas investors including the Chinese are beginning to buy.
The optimism appears to be born out by official figures. Price declines slowed during the first quarter of 2009 in 19 areas within the three biggest cities, compared with one area in the preceding quarter, according to the Ministry of Land.
Official figures also show that commercial land prices in Japan dropped 4.7% to a three-year low in 2008. In the three largest metropolitan areas of Tokyo, Osaka and Nagoya, the decline was higher at 5.4%.
