"The retail sector continues to build on previous years' positive momentum, supported by sustained inbound tourism growth and strong tenant demand. Luxury goods continue to anchor retail consumption, but consumer demands are gradually shifting towards unique, experiential products and services. Government efforts are underway to direct inbound tourism towards regional destinations, boding well for local retail as visitors venture beyond major cities. "

"Japan’s retail sector continues its positive performance into 2025. Strong demand has been witnessed for store openings along premier streets in Tokyo and across regional markets, and availabilities are currently extremely low in such locations. Inbound tourism has gone from strength to strength, and elevated inbound spending should further buoy retail sectors moving forward, although performance may largely depend on respective submarkets’ ability to attract inbound visitors. In the meantime, strong wage growth should bode well for domestic consumption."

"Tokyo’s ultra-luxury residential market has seen heightened interest, especially with the successful launch of multiple developments over the past few years. Due to limited supply and stock, units that originally struggled to gain traction now fare well, while popular units have seen significant price increments against original sales prices. Demand for ultra-luxury residences should remain high on the back of a growing number of UHNWIs in Japan and the Asia Pacific region. Given the limited supply towards 2030, this market is expected to remain strong and will be ready to welcome major developments in years to come."

"The 23W residential market sustained its positive momentum over the quarter, with most wards recording robust quarterly rental growth, driven by tight demand and supply fundamentals. It is highly likely that average rents in our monitored portfolio appear higher than the reality and seasonality accelerates this momentum, but this should be a good indicator of the current hot market."