INTRODUCTION :- JAPAN BACKGROUND: In 1603, after decades of civil warfare, the Tokugawa shogunate (a military-led, dynastic government) ushered

in a long period of relative political stability and isolation from foreign influence. For more than two centuries this policy enabled Japan to enjoy a flowering of its indigenous culture. Japan opened its ports after signing the Treaty of Kanagawa with the US in 1854 and began to intensively modernize and industrialize. During the late 19th and early 20th centuries, Japan became a regional power that was able to defeat the forces of both China and Russia. It occupied Korea, Formosa (Taiwan), and southern Sakhalin Island. In 1931-32 Japan occupied Manchuria, and in 1937 it launched a full-scale invasion of China. Japan attacked US forces in 1941 - triggering America's entry into World War II - and soon occupied much of East and Southeast Asia. After its defeat in World War II, Japan recovered to become an economic power and an ally of the US. While the emperor retains his throne as a symbol of national unity, elected politicians hold actual decision-making power. Following three decades of unprecedented growth, Japan's economy experienced a major slowdown starting in the 1990s, but the country remains a major economic power. In March 2011, Japan's strongest-ever earthquake, and an accompanying tsunami, devastated the northeast part of Honshu island, killing thousands and damaging several nuclear power plants. The catastrophe hobbled the country's economy and its energy infrastructure, and tested its ability to deal with humanitarian disasters. GEOGRAPHY ::JAPAN Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula Geographic coordinates: 36 00 N, 138 00 E Map references: Asia Area: total: 377,915 sq km country comparison to the world: 62 land: 364,485 sq km water: 13,430 sq km note: includes Bonin Islands (Ogasawara-gunto), Daito-shoto, Minami-jima, Okino-tori-shima, Ryukyu Islands (Nansei-shoto), and

Volcano Islands (Kazan-retto) Area - comparative: slightly smaller than California Land boundaries: 0 km Coastline: 29,751 km Maritime claims: territorial sea: 12 nm; between 3 nm and 12 nm in the international straits - La Perouse or Soya, Tsugaru, Osumi, and Eastern and Western Channels of the Korea or Tsushima Strait contiguous zone: 24 nm exclusive economic zone: 200 nm Climate: varies from tropical in south to cool temperate in north Terrain: mostly rugged and mountainous Elevation extremes: lowest point: Hachiro-gata -4 m highest point: Fujiyama 3,776 m Natural resources: negligible mineral resources, fish note: with virtually no energy natural resources, Japan is the world's largest importer of coal and liquefied natural gas, as well as the second largest importer of oil

Land use: arable land: 11.26% permanent crops: 0.81% other: 87.93% (2011) Irrigated land: 25,000 sq km (2010) Total renewable water resources: 430 cu km (2011) Freshwater withdrawal (domestic/industrial/agricultural): total: 90.04 cu km/yr (20%/18%/62%) per capita: 714.3 cu m/yr (2007) Natural hazards: many dormant and some active volcanoes; about 1,500 seismic occurrences (mostly tremors but occasional severe earthquakes) every year; tsunamis; typhoons volcanism: both Unzen (elev. 1,500 m) and Sakura-jima (elev. 1,117 m), which lies near the densely populated city of Kagoshima, have been deemed Decade Volcanoes by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to their explosive history and close proximity to human populations; other notable historically active volcanoes include Asama, Honshu Island's most active volcano, Aso, Bandai, Fuji, Iwo-Jima, Kikai, Kirishima, Komaga-take, Oshima, Suwanosejima, Tokachi, Yake-dake, and Usu Environment - current issues: air pollution from power plant emissions results in acid rain; acidification of lakes and reservoirs degrading water quality and threatening aquatic life; Japan is one of the largest consumers of fish and tropical timber, contributing to the depletion of these resources in Asia and elsewhere Environment - international agreements: party to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94,

Wetlands, Whaling signed, but not ratified: none of the selected agreements

GOVERNMENT ::JAPAN strategic location in northeast Asia Country name: conventional long form: none conventional short form: Japan local long form: Nihon-koku/Nippon-koku local short form: Nihon/Nippon Government type: a parliamentary government with a constitutional monarchy Capital: name: Tokyo geographic coordinates: 35 41 N, 139 45 E time difference: UTC+9 (14 hours ahead of Washington, DC during Standard Time) Administrative divisions: 47 prefectures; Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka, Fukushima, Gifu, Gunma, Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishikawa, Iwate, Kagawa, Kagoshima, Kanagawa, Kochi, Kumamoto, Kyoto, Mie, Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama, Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi, Tokushima, Tokyo, Tottori, Toyama, Wakayama, Yamagata, Yamaguchi, Yamanashi Independence: 3 May 1947 (current constitution adopted as amendment to Meiji Constitution); notable earlier dates: 660 B.C. (traditional date of the founding of the nation by Emperor JIMMU); 29 November 1890 (Meiji Constitution provides for constitutional monarchy) National holiday:

Birthday of Emperor AKIHITO, 23 December (1933) Constitution: previous 1890; latest approved 6 October 1946, adopted 3 November 1946, effective 3 May 1947 (2013) Legal system: civil law system based on German model; system also reflects Anglo-American influence and Japanese traditions; judicial review of legislative acts in the Supreme Court International law organization participation: accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction Suffrage: 20 years of age; universal Executive branch: chief of state: Emperor AKIHITO (since 7 January 1989) head of government: Prime Minister Shinzo ABE (since 26 December 2012); Deputy Prime Minister Taro ASO (since 26 December 2012) cabinet: Cabinet is appointed by the prime minister (For more information visit the World Leaders website )

elections: Diet, the bicameral legislature, designates the prime minister; constitution requires that the prime minister commands parliamentary majority; following legislative elections, the leader of majority party or leader of majority coalition in House of Representatives usually becomes prime minister; the monarchy is hereditary Legislative branch: bicameral Diet or Kokkai consists of the House of Councillors or Sangi-in (242 seats - members elected for fixed six-year terms; 146 members in multi-seat constituencies and 96 by proportional representation) half elected every three years; and the House of Representatives or Shugi-in (480 seats - members elected for maximum four-year terms; 300 in single-seat constituencies; 180 members by proportional representation in 11 regional blocs); the prime minister has the right to dissolve the House of Representatives at any time with the concurrence of the cabinet elections: House of Councillors - last held on 21 July 2013 (next to be held in July 2016); House of Representatives - last held on 16 December 2012 (next to be held by 15 December 2016)

election results: House of Councillors - percent of vote by party - NA; seats by party - LPD 115, DPJ 59, New Komeito 20, Your Party 18, JCP 11, JRP 9, SDP 3, others 4, independents 3 House of Representatives - percent of vote by party (by proportional representation) - LDP 31.6%, DPJ 16.6%, JRP 22.2%, New Komeito 12.2%, Your Party 7.7%, JCP 4.4%, TRP 3.9%, others 1.4%; seats by party LDP 294, DPJ 57, JRP 54, New Komeito 31, Your Party 18, TPJ 9, JCP 8, others 4, independents 5 Judicial branch: highest court(s): Supreme Court or Saiko saibansho (consists of the chief justice and 14 associate justices) note - the Supreme Court has jurisdiction in constitutional issues judge selection and term of office: Supreme Court chief justice designated by the Cabinet and appointed by the monarch; associate justices appointed by the Cabinet and confirmed by the monarch; all justices are reviewed in a popular referendum at the first general election of the House of Representatives following each judge's appointment and every 10 years afterward subordinate courts: 8 High Courts (Koto-saiban-sho), each with a Family Court (Katei-saiban-sho); 50 District Courts (Chiho saibansho), with 203 additional branches; 438 Summary Courts (Kani saibansho) ECONOMY ::JAPAN Economy - overview: In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which

edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy. GDP (purchasing power parity): $4.576 trillion (2012 est.) country comparison to the world: 5 $4.488 trillion (2011 est.) $4.514 trillion (2010 est.) note: data are in 2012 US dollars GDP (official exchange rate): $5.88 trillion (2012 est.) GDP - real growth rate: 2% (2012 est.) country comparison to the world: 134 -0.6% (2011 est.) 4.7% (2010 est.) GDP - per capita (PPP): $35,900 (2012 est.) country comparison to the world: 36 $35,100 (2011 est.) $35,300 (2010 est.) note: data are in 2012 US dollars Gross national saving: 21.6% of GDP (2012 est.)

country comparison to the world: 65 22% of GDP (2011 est.) 23.5% of GDP (2010 est.) GDP - composition, by end use: household consumption: 60.9% government consumption: 20.5% investment in fixed capital: 21.2% investment in inventories: -0.6% exports of goods and services: 14.7% imports of goods and services: -16.6% (2012 est.) GDP - composition, by sector of origin: agriculture: 1.1% industry: 26.1% services: 72.8% (2012 est.) Agriculture - products: rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish Industries: among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods Industrial production growth rate: 1% (2012 est.) country comparison to the world: 123 Labor force:

65.55 million (2012 est.) country comparison to the world: 9 Labor force - by occupation: agriculture: 3.9% industry: 26.2% services: 69.8% (2010 est.) Unemployment rate: 4.4% (2012 est.) country comparison to the world: 38 4.6% (2011 est.) Population below poverty line: 16% (2010) Household income or consumption by percentage share: lowest 10%: 1.9% highest 10%: 27.5% (2008) Distribution of family income - Gini index: 37.6 (2008) country comparison to the world: 76 24.9 (1993) Budget: revenues: $1.988 trillion expenditures: $2.578 trillion (2012 est.) Taxes and other revenues:

33.8% of GDP (2012 est.) country comparison to the world: 73 Budget surplus (+) or deficit (-): -10% of GDP (2012 est.) country comparison to the world: 200 Public debt: 219.1% of GDP (2012 est.) country comparison to the world: 2 210.6% of GDP (2011 est.) Fiscal year: 1 April - 31 March Inflation rate (consumer prices): 0% (2012 est.) country comparison to the world: 4 -0.3% (2011 est.) Central bank discount rate: 0.1% (31 December 2012) country comparison to the world: 140 0.3% (31 December 2009) Commercial bank prime lending rate: 1.48% (31 December 2012 est.) country comparison to the world: 181 1.48% (31 December 2011 est.)

Stock of narrow money: $6.176 trillion (31 December 2012 est.) country comparison to the world: 2 $6.636 trillion (31 December 2011 est.) Stock of broad money: $13.12 trillion (31 December 2011 est.) country comparison to the world: 2 $13.41 trillion (31 December 2010 est.) Stock of domestic credit: $13.72 trillion (31 December 2012 est.) country comparison to the world: 3 $14.82 trillion (31 December 2011 est.) Market value of publicly traded shares: $4.011 trillion (31 December 2012) country comparison to the world: 3 $3.541 trillion (31 December 2011) $4.1 trillion (31 December 2010) Current account balance: $60.8 billion (2012 est.) country comparison to the world: 11 $119 billion (2011 est.) Exports: $776.6 billion (2012 est.)

country comparison to the world: 5 $789.9 billion (2011 est.) Exports - commodities: motor vehicles 13.6%; semiconductors 6.2%; iron and steel products 5.5%; auto parts 4.6%; plastic materials 3.5%; power generating machinery 3.5% Exports - partners: China 18.1%, US 17.8%, South Korea 7.7%, Thailand 5.5%, Hong Kong 5.1% (2012) Imports: $830.1 billion (2012 est.) country comparison to the world: 5 $794.4 billion (2011 est.) Imports - commodities: petroleum 15.5%; liquid natural gas 5.7%; clothing 3.9%; semiconductors 3.5%; coal 3.5%; audio and visual apparatus 2.7% (2011 est.) Imports - partners: China 21.3%, US 8.8%, Australia 6.4%, Saudi Arabia 6.2%, UAE 5%, South Korea 4.6%, Qatar 4% (2012) Reserves of foreign exchange and gold: $1.268 trillion (31 December 2012 est.) country comparison to the world: 2 $1.296 trillion (31 December 2011 est.) Debt - external: $3.024 trillion (31 December 2012) country comparison to the world: 6 $3.115 trillion (31 December 2011)

Stock of direct foreign investment - at home: $222.2 billion (31 December 2012 est.) country comparison to the world: 25 $242.2 billion (31 December 2011 est.) Stock of direct foreign investment - abroad: $1.054 trillion (31 December 2012 est.) country comparison to the world: 8 $972.3 billion (31 December 2011 est.) Exchange rates: yen (JPY) per US dollar 79.79 (2012 est.) 79.81 (2011 est.) 87.78 (2010 est.) 93.57 (2009) 103.58 (2008) https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html

A KEEN EYE FOR REAL ESTATE

As Japanese corporate sentiment gets a boost from "Abenomics" the country's sluggish property market is showing signs of life, with office prices in Tokyo expected to surge 10 percent over the next 18 months, according to one of the world's largest real estate funds. AXA Real Estate, the property arm of Europe's second largest insurer that has 45 billion euros ($59 billion) of assets under management, is now looking at buying office space in Tokyo, says its global head of Asia Frank Khoo. He forecasts higher demand for commercial property in the coming months stemming from an improvement in corporate profitability in Japan.

"The weak yen is going to help the exporters and smaller manufacturers as well, this should lift confidence and translate into higher demand. With higher demand we should see vacancy coming down and rentals going up," Khoo said. "Companies are going to use current low rental rates to move from outer Tokyo into inner Tokyo for better quality buildings [in turn pushing rentals up]," he added. He forecasts vacancy rates will fall to 4 percent in 2014 from 8 percent currently, adding that office rents, which have largely remained flat for the past three years, will climb 1-2 percent this year and 2-4 percent next year. Tokyo's central business district is currently ranked the world's fifth most expensive market to rent office space in, according to global real estate services firm Cushman and Wakefield, down from third place in 2012. Investors have flocked into Japanese real estate investment trusts (REITs) in recent months on hopes "Abenomics" - or Prime Minister Shinzo Abe's economic revival plan that pushes for both monetary and fiscal stimulus - would drive a recovery in the property market. Shares of REITs including Japan Real Estate Investment and Nippon Building Fund have surged more than 50 percent year to date. "The REITs are back in the market acquiring assets," Khoo said. In further evidence of rising optimism over the property sector, Japan's Nippon Prologis REIT, which owns and manages warehouses across the country, raised $1.08 billion through an initial public offering in February after pricing the stock at the top of the range. Khoo added that with Japanese government bond yields look set to remain low, there has been a shift in attitude towards investing in property among both institutional and retail investors. "If you look at the mom and pops, they are really hungry for yield. With 10-year Japanese government bonds below 0.6 percent, if you can get a 4 percent yield in commercial real estate, or 3.5 percent investing in a Japanese REIT, I think money will go that way," he said. Original Source URL:

http://www.cnbc.com/id/100687192 INVESTMENT REQUIRED

Investing in Japanese real estate is better here on a cash flow basis than other countries. Basically what this means is you buy a property, find a renter and your expected yield should be net 8% to make it a worthy investment. If youre able to borrow 100% of the purchase price from a bank, then you basically own a property and get 8% cash in your bank at the end of every month using none of your own capital. Buy a building with many units and it spreads out your vacancy risk as an investor thanks to volume.

Japanese tenants are moving from the rural areas into the suburban areas surrounding Tokyo. In adjacent areas like Saitama, Chiba and Kanagawa prefectures, there are many opportunities to purchase high cash flow producing real estate that can rent to tenants for under JPY 100,000.
REASON I CHOOSE THIS OPPORTUNITY After almost two years of house price falls, Japans housing market is now gaining momentum, mainly due to the economic policies of Prime Minister Shinzo Abe, who came to power in December 2012. These economic policies, which are now affectionately referred to as Abenomics, include increasing public infrastructure spending, devaluation of the yen and aggressive quantitative easing by the Bank of Japan (BOJ). In Tokyo Metropolitan Area:

The average price of new condominium units soared by 9.2% y-o-y to JPY686,000 (US$6,931) per square metre (sq. m.) in June 2013, based on figures released by the Land Institute of Japan (LIJ). The average price of existing condominium units rose by 5.9% to JPY399,700 (US$4,039) per sq. m. during the year to June 2013. The average price of existing detached houses was up by 1.5% to JPY32,130,000 (US$324,644) over the same period.

In Osaka Metropolitan Area:

The average price of new condominium units rose by 8.8% to JPY542,000 (US$5,476) per sq. m. during the year to June 2013. The average price of existing condominium units increased by 5% to JPY250,000 (US$2,526) per sq. m. over the same period. The average price of existing detached houses was down by just 0.5% to JPY20,000,000 (US$202,081) over the same period.

Land prices are also rising. During the year to June 2013, the average price of land in Tokyo Metropolitan Area rose by 5.2% to JPY204,500 (US$2,066) per sq. m., while in Osaka Metropolitan Area the average land price increased by 2.3% to JPY132,000 (US$1,334) per sq. m. Residential construction activity is picking up. The number of new dwelling starts in Japan increased by 8.6% to 451,063 during the first half of 2013, compared to the same period last year, according to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Property sales are rising sharply. In Tokyo, the total number of condos sold rose 16.7% to 19,070 during the first half of 2013 compared to the same period last year, according to LIJ. In Osaka, the number of condos sold rose by 14.4% to 8,758 over the same period. Total outstanding real estate loans in Japan increased 2.6% y-o-y to JPY444 trillion (US$44.86 trillion) in

Q1 2013, according to the Bank of Japan (BOJ).

House prices are expected to continue to rising in the remaining months of 2013, according to local property experts. Moreover, Tokyos successful bid to host the 2020 Summer Olympics is expected to boost property demand and the construction sector during the next 7 years. The international rating agency, Moodys, has recently revised the outlook on the countrys real estate sector from negative to stable. The Japanese economy grew by an annualized rate of 3.8% in Q1 and Q2 2013. The economy is expected to expand by about 2.8% for the whole year of 2013, up from a 2% in 2012 and a 0.6% contraction in 2011. Analysis of japan Residential Property Market
RENTAL YIELDS

Last Updated: Apr 26, 2013

Yields continue to rise in Tokyo

Rental yields in Tokyos five central wards have continued to increase. Its a trend we spotted last year, and it is strengthening. Yields in Tokyo range from 5.12% to 6.47%. Theyre a little higher on smaller apartments, but not much. Not bad for a city like Tokyo. Prices per square metre range from around $9,300 to $12,700 down on last year because the Yen has fallen.

Expensive, but that is what global cities cost. In Yen terms residential prices continue to strengthen. Thats likely to continue so long as Abenomics is in place. More money in the system means lower interest rates means increasing asset prices, especially prices of assets that produce nice incomes, like Tokyo property. This is going to be interesting. Assuming that Abenomics really leads to a revival of the Japanese economy, rising incomes will continue to support rising rents. Looking good for Japanese residential property!

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TAXES AND COSTS

Last Updated: Jan 30, 2013

Effective rental income tax is low in Japan

Rental Income: Rental income of nonresident individuals is subject to 10% tax. However, effective rental income tax is low, ranging from 3.4% to 5.9%. Nonresident taxpayers are taxed on their net income; depreciation and income-generating expenses such as maintenance and repairs are deductible from the gross rent. Capital Gains: Net gains realized from selling short-term real properties, i.e. property held for less than 5 years, are taxed at 30%. Net gains on property held beyond five years are taxed at 15%. Inheritance: Inheritance is based on residency status but foreign individuals inheriting property located in Japan are still subject to inheritance tax, which is levied at progressive rates. Residents: A permanent resident taxed on his worldwide income at progressive rates, from 5% to 40%.

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BUYING GUIDE
Last Updated: Jan 30, 2013

Moderate roundtrip buying costs in Japan

The total roundtrip transaction cost is around 9.26% to 9.45%, inclusive of the 3.15% agents fee plus an additional payment of JPY63,000 (US$682). The acquisition tax differs for land and buildings at 1.50% and 3%, respectively.

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LANDLORD AND TENANT

Last Updated: Jun 21, 2006

Japanese landlords get key money

Tenancy laws passed in 2000 shifted the balance of power from tenants to landlords, making Japan strongly pro-landlord. Rents: Rents are freely negotiable. Aside from two to three months security deposit, landlords receive key money worth one to two months rent. Tenant Eviction: Automatic renewals of leases were abolished in 2000, making eviction easier. If the tenant prematurely ends the contract the landlord can charge one months rent.

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ECONOMIC GROWTH

Last Updated: Oct 19, 2013

Healthy economic growth in 2013

Japan is the worlds third largest economy, a major aid donor and one of the primary sources of global capital and credit, with a population of 127.6 million in 2012 and GDP per capita of US$46,736. The country is the worlds fourth largest exporter and fourth largest importer, and has the worlds largest electronics industry. From 2000 to 2007, the Japanese economy grew by an average of 1.5% annually. However due to the global financial meltdown, the economy contracted by 1% in 2008 and by another 5.5% in 2009. The economy returned to growth in 2010 with real GDP growth of 4.7%. Then Japanese growth contracted again, shrinking by 0.6% in 2011 due to the impact of the Great Tohoku Earthquake (magnitude 9.0) last March 11, 2011. In addition the economic slowdown in China, Japans largest export market, exacerbated the situation. Then theres the anti-Japanese feeling in China sparked by the dispute over Diaoyu/Senkaku Islands. In 2012, the economy had GDP growth of 2%. The Japanese economy is projected to grow robustly in the coming years mainly due to the economic policies advocated by Prime Minister Shinzo Abe, who came into power in December 2012. These economic policies, which are now widely referred to as Abenomics, include the following:

Inflation targeting at 2% Correction of the excessive appreciation of the yen Setting negative interest rates Radical quantitative easing Expansion of public investment Buying operations of construction bonds by Bank of Japan Revision of the Bank of Japan Act

Robert Feldman, head of Japan economic research at the Morgan Stanley, projects that the Olympic Games will add around 0.7% to 0.8% of GDP over 7 years. Our rough view is that the impact could be at least similar to the U.K. [host of the London 2012 Summer Olympics], at around 0.7-0.8 percent of GDP over 7 years, or about 3-4 trillion yen on a value added basis, or about 6-8 trillion yen on a gross output basis, said Feldman. The Japanese economy grew by an annualized rate of 3.8% in both Q1 and Q2 2013. The economy is expected to expand by about 2.8% for the whole year of 2013. In July 2013, the nationwide annual inflation rate rose to 0.7% from a year earlier, its second consecutive month of gains and the largest increase in consumer prices in five years, mainly due to increased manufacturing. Consumer prices have continuously fallen in the past four years, with annual inflation rates of -1.3% in 2009, -0.7% in 2010, -0.3% in 2011 and -0.04% in 2012, according to the International Monetary Fund (IMF). Because of Prime Minister Shinzo Abes efforts to correct the excessive appreciation of the yen, the domestic currency weaken sharply to JPY97.82 = US$1 in August 2013. Abes decision immediately reaped rewards when exports increased by 10.1% in May 2013 from the same period last year, the fastest annual rise since 2010, based on figures from the Ministry of Finance. However, Japans trade deficit is growing, mainly due to the weaker yen and the countrys soaring energy import bill. In August 2013, the countrys trade deficit ballooned to JPY969.9 billion (US$9.8 billion). http://www.globalpropertyguide.com/Asia/japan

DEMAND:
Housing demand and housing prices in Japan and the US. Chihiro Shimizu, Reitaku University Japan have experienced the housing bubbles and subsequent collapses of the bubbles in succession. The house price in Japan continued to decline for 20 years after the collapse of bubbles. The one of reasons for this, housing demand based on population had dropped at the same period. We focused on the relationship between the demand for houses and house prices based the panel data in Japan. Shimizu and Watanabe (2010) indicated that there is no significant relationship between the demand for houses and house prices in Japan. In this sense, it is hard to explain whether there is a bubble and the size of the bubble according to prefecture (state) using demand elements. This suggests that it is possible that the concept of demographics having an impact on the demand for houses, which thus caused the house

prices to increase, is not effective in explaining the price fluctuations in neither Japan nor the US. Is it correct or reasonable result? The purpose of this paper develop several housing population-based demand factors and focus on the relationship between these demand factors and housing prices on Japan. Presented in Session 123: The effects of demographic changes on housing in the Asia-Pacific region COMPETITION AD Works Co Ltd A.D.Works Co.,Ltd. operates real estate business and provides due diligence services that evaluate values of real estate properties. The company also provides support businesses for real estate investment funds. Aeon Mall Co Ltd (8905) AEON Mall Co., Ltd. develops, manages, and maintains large-scale shopping malls throughout Japan. The Company develops shopping malls, rent the space, manages and maintains the shopping malls. Apamanshop Holdings Co Ltd (8889) Apamanshop Holdings Co., Ltd. maintains a real estate properties database and provides real estate agency services and information services through its franchises. The Company also publishes magazines for rental properties. In addition, Apamanshop Holdings leases and manages real estate properties. Ardepro Co Ltd (8925) ARDEPRO CO.,Ltd. sells, leases, and manages real estate properties. The Company also provides consulting services on real estate. Area Quest Inc (8912) Area Quest Inc. provides property management services on behalf of property owners. The Company also attracts and negotiates with new tenants for the owners. Area Quest also provides a total business solution, such as marketing activities and leasing contract by coordinating business outsourced mainly by tenant companies. Arealink Co Ltd (8914) Arealink Co.,Ltd. provides real estate leasing services. The Company also operates real estate businesses including storage and parking space rental. Arealink also develops and constructs custom-made and rental buildings. Business One Holdings Inc (4827)

Business One Holdings, Inc., mainly provides real estate management services for condominiums. The Company also develops and sells estimate evaluation software for plumbing and electrical contractors. Business One Holdings operates corporate mortgage services as well as real estate brokerage services. Central General Development Co Ltd (3238) CENTRAL GENERAL DEVELOPMENT CO., LTD. develops and sells condominiums. The Company also leases and manages real estate properties. Cosmos Initia Co Ltd (8844) COSMOS INITIA Co., Ltd. sells real estate properties mainly in Tokyo and Kinki areas. The Company also constructs, manages, maintains, and repairs multi-unit buildings and office buildings and provides real estate brokerage services. Daibiru Corp (8806) DAIBIRU CORPORATION leases office buildings including apartments and hotels. The Company also provides commercial cleaning and management services through its related companies. http://www.bloomberg.com/markets/companies/real-estate-mgmnt-servic/