Japan’s property sector looks strong. So why are investors going abroad?

When it comes to the performance of real estate markets in the Asia-Pacific, Japan reigns supreme. Asia’s second largest economy is the deepest, most widely traded, and the safest market in the region. Last year, Japan accounted for 28 per cent of direct investment in Asia-Pacific commercial real estate, data from MSCI shows. The average vacancy rate for grade A offices in Tokyo was 0.7 per cent in the first quarter of this year. Rents have risen for nine straight quarters, increasing 13.2 per...