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Last updated: June 1, 2026, 5:36 AM ET

Japan Real Estate Market Shifts

Japan's real estate landscape is undergoing significant transformation as higher borrowing costs and changing capital dynamics force investors to reassess return strategies. LaSalle Investment Management's Steve Hyung Kim notes a shift from tailwinds to discipline in Japan's market, as traditional approaches to returns generation require fundamental rethinking. This sentiment is echoed by Seven Seas Advisors' Minoru Yonekura and Kenya Shimono, who observe inflation shifts widening return divides and pushing capital toward higher-yielding strategies. Despite these challenges, Japan's multifamily sector shows resilience, with Alyssa Partners' Chedli Boujellabia reporting middle-class apartments entering a new growth cycle that continue to deliver attractive risk-adjusted returns and scalability prospects. James Alker highlights surprising pricing resilience across Japanese assets,