Japan REIT number to double in 2005

It is expected that the number of listed REIT in Japan will double to 30 in 2005.
The current yield on REIT is about 3.8% and we expect the REIT boon to continue
as long as there is a substantial gap between Japanese Government Bond returns,
currently 1.5% for 10 years, and REIT returns.
For the real estate market, that wil likely translate in a paradoxal situation with a continuous strong activity to build premium buildings for REIT, an increase in building value as well as decrease in rents provoked by the high supply of new buildings and also the contraction of demand resulting of Japanese poor demographics.

For more details see JMC site

Japan Economy: more and more dependent on China, slow growth ahead, inflation to get out of deficit

Jesper Koll, chief economist of Merril Lynch, was giving his annual Japan economy forecast speech at the ACCJ on February Friday 4. Among his main messages were:

- Japan economy is more and more dependent on China. China is the most important export market for Japan

- Japan GDP growth will be slowed by both:

- tax increases that will represent about 2TY for the next 3 years

- poor demographics that will see the baby boom high paid generation retir, only partially replaced by less numerous, partially employed younger generation with much lower paychecks

- Japan government budget and debt (150% of GDP) is becoming preoccupant and Dr. Koll predicts inflation will probably the way out.

Eric Perraudin, Managing Partner JMC.