Market Data Book

Market Data Book March 2019

1

Disclaimer

The contents of this document, including summary notes, quotes, data and other information, are provided solely for informational purposes of

market condition and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell, any specific products.

When you invest, please make decision by your own judgement and responsibility.

Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document contains forward-

looking statements and anticipations of future results, based on current assumptions and beliefs in light of currently available information and

resources. Risks and uncertainties, both known and unknown, including those relating to the future performance of the real estate market in Japan,

interest rate fluctuations, competitive scenarios, and changing regulations or taxation, may cause Kenedix Residential Investment Corporation

(KDR)'s actual results, performance, achievements and financial performance to be materially different from those explicitly or implicitly expressed in

this document.

With respect to any and all terms herein, including without limitation, this document, the information provided is intended to be thorough. However,

no assurance or warranties are given with respect to the accuracy or completeness thereof.

Neither KDR nor Kenedix Real Estate Fund Management, Inc. (KFM) shall be liable for any errors, inaccuracies, loss or damage, or for any actions

taken in reliance thereon, or undertake any obligation to publicly update the information contained in this document after the date of this

document.

Revised editions of our annual reports will be posted on our website if there should be major corrections going forward.

2

Index

1. Economy trend

Real GDP growth rate and annual contribution to change in GDP

p.3

CPI (YoY) p.4

Employment environment p.5

Wage indices (YoY) p.6

CPI and private house rent (YoY) p.7

Correlation with private house rent p.8

2. Asset trend

-a. Demand

Net inflow of residents into Tokyo 23 wards and major cities in Japan

p.9

Residents growth rate in Tokyo 23 wards and major cities in Japan (YoY)

p.10

Population by age group p.11

Types of households p.12

Principal households and households in rental apartments (non-wooden)

p.13

Housing stock in Japan p.14

Households in owner-occupied housing and private rental housing by floor space

p.15

Households in rental apartments (non-wooden) by person and floor space

p.16

House ownership rate by age group p.17

Percentage of age group in owner-occupied households

p.18

-b. Supply

Construction of rental apartments p.19

Construction of condos and detached houses

p.20

Percentage of room type of newly built housings in Tokyo 23 wards

p.21

Construction of newly built housings by room type in Tokyo metropolitan area

p.22

Construction of rental apartments and net inflow of residents into Tokyo 23 wards and major cities in Japan

p.23

Construction cost indices (Tokyo) p.24

-c. Rental housing fundamentals

Construction of rental housings in Tokyo metropolitan area

p.25

Rent of rental apartments by area and room type

p.26

Occupancy rate of rental apartments operated by J-REITs

p.27

Rent of rental apartments operated by J-REITs

p.28

Urban land price indices of commercial and residential in six major cities in Japan (YoY)

p.29

Public notice of land prices in residential area

p.30

Rent levels by property type p.31

3. Capital trend

-a. Acquisition of properties

Investors’ expected cap rate of rental apartment (standard studio)

p.32

Appraisal cap rates at the acquisition of rental apartments by J-REITs

p.33

Amount of asset acquired by J-REITs p.34

-b. Debt environment

Lending attitude of financial institutions (Diffusion index of “Accommodative” minus “Severe”)

p.35

New loans for fixed investment to real estate sector by domestic banks

p.36

JBA Japanese yen TIBOR p.37

10-year JGB interest rate p.38

-c. Equity environment

Yield spread p.39

Buying J-REITs by Bank of Japan p.40

4. Healthcare facility trend

Population pyramid p.41

Trend and projection in average life expectancy

p.42

One-person households which householder is over 65 years old

p.43

Elderly population in each prefecture p.44

Facilities and capacity in fee-based homes

p.45

Registration situation in serviced housing for the elderly

p.46

5. Hotel trend

International tourists arrivals p.47

Inbound visitors p.48

Growth rate of inbound visitors (YoY) p.49

Growth rate of inbound visitors and inbound guests (YoY)

p.50

Occupancy rate of hotels p.51

Charge of hotels p.52

Guests in domestic accommodations p.53

Facilities and rooms in hotels/ryokans p.54

3

1. Economy trend

-20

-15

-10

-5

0

5

10

15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015 2016 2017 2018

(%) 民間最終消費支出民間住宅企業設備投資公的需要純輸出入民間在庫品増加実質GDP

Real GDP growth rate and annual contribution to change in GDP

Source ：The Cabinet Office. Quarterly Estimates of GDP.

Change in

private inventories Net exportsPublic

demand

Private

non-resi.

investment

Private

residential

investment

Consumption

of households Real GDP

4

1. Economy trend

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(%)総合生鮮食品を除く総合食料（酒類を除く）及びエネルギーを除く総合

Revision of

consumption tax rate

CPI (YoY)

All

items

All items,

less fresh food

All items, less food

(less alcoholic beverages) and energy

Source ：Ministry of Internal Affairs and Communications. Consumer Price Index.

April 2014

5

1. Economy trend

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

3.0

4.0

5.0

6.0

7.0

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

(times)(%) 完全失業率（左軸）有効求人倍率（右軸）

Employment environment

Active job openings-to-applicants rate (RHS)Unemployment rate (LHS)

Source ：Ministry of Internal Affairs and Communications. Labour Force Survey. Ministry of Health, Labour and Welfare. Employment Referrals for General Workers.

6

1. Economy trend

-4.0

-2.0

0.0

2.0

4.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

賃金指数実質賃金指数

Wage indices (YoY)

Wage index Real wage index

Source ：Ministry of Health, Labour and Welfare. Monthly Labour Survey.

Note ：Wage Indices are indexed total cash earnings of establishments with 5 employees or more, total type of employment and total industries covered. Real wage indices is calculated by dividing the wage indices by CPI (all items. Less imputed rent).

7

1. Economy trend

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

民営家賃消費者物価指数

CPI and private house rent (YoY)

Private house rent CPI

Source ：Ministry of Internal Affairs and Communications. CPI Annual Change.

Note ：CPI Annual Change means the Annual Change of the Total Index of all items, less food (less alcoholic beverages) and energy.

8

1. Economy trend

Wag

e (

Yo

Y)

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Coefficient of

correlation

0.89

CP

I (Y

oY

)

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Coefficient of

correlation

0.88

Correlation with private house rent

Correlation between private house rent and CPI Correlation between private house rent and wage

Private house rent (YoY) Private house rent (YoY)

Source ： Ministry of Internal Affairs and Communications. CPI Annual Change. Ministry of Health, Labour and Welfare. Basic Survey on Wage Structure. Bank of Japan. Monthly Report of Recent Economic and Financial Developments. Ministry of land,

Infrastructure, Transport and Tourism. Statistics for the Construction of New Building.

Note ：The above graphs are prepared based on the data from 1971 to 2018. However, the graph of correlation between wage annual change is prepared based on the available data from 1989 to 2018.

9

2. Asset trend

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Sapporo city Sendai city Tokyo 23 wards Nagoya city Osaka city Fukuoka city

2015 2016 2017 2018(person)

Source ：Ministry of Internal Affairs and Communications. Report on Population Movement based on the Basic Resident Register.

Note ：The net inflow of residents is calculated by subtracting the total number of residents moving out of the relevant city from the total number of residents moving into the relevant city.

Net inflow of residents into Tokyo 23 wards and major cities in Japan

10

2. Asset trend

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Fukuoka pref.

Fukuoka city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Miyagi pref.

Sendai city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Hokkaido pref.

Sapporo city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Aichi pref.

Nagoya city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Osaka pref.

Osaka city

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2010 2012 2014 2016 2018

Tokyo pref.

Tokyo 23 wards

Source ：Ministry of Internal Affairs and Communications. Report on Population Movement based on the Basic Resident Register.

Note ：Residential population growth rate is calculated based on comparison with the previous fiscal year ended March 31. Methods for calculating statistics have been revised in 2006. The foreigners subject to the basic resident registration law have been included in the statistics since 2013, but this analysis indicates the transition related to Japanese only.

Residents growth rate in Tokyo 23 wards and major cities in Japan(YoY)

Tokyo 23 wards Osaka city Nagoya city

Sapporo city Sendai city Fukuoka city

11

2. Asset trend

Source ： National Institute of Population and Social Security Research. Population Projection for Japan (2017):

Note ： Dependency Ratio is defined as the proportion of those aged under 15 and over 65 to all あthose between these ages. The results of projections according to the Medium-Fertility assumption with Middle-Mortality assumption.

Population by age group

0%

10%

20%

30%

40%

50%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065

Over 65 y/o 15-64 y/o 0-14 y/o Dependency ratio(in thousands)

ProjectionActual

12

2. Asset trend

ProjectionActual

Source ： National Institute of Population and Social Security Research. Household Projection for Japan(January 2018).

Note ： The data for the periods from 2015 to 2040 are projections.

Types of households

0

10,000

20,000

30,000

40,000

50,000

60,000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

(in thousands)Single (actual) Single (projection: under 65 y/o(head of household)) Single (projection: 65 y/o and over (head of household))

Small Family Others Total households

13

2. Asset trend

Source ： Ministry of Internal Affairs and Communications. Housing and Land Survey. Management and Coordination Agency. Housing Survey.

Note 1 ： The percentage of rental apartments is calculated by dividing the number of principal households in rental apartments (non-wooden) by the number of principal households in Japan.

Note 2 ： If a household is occupying an entire dwelling, the household is defined as a “principal household.” If two or more households are living together in a dwelling, the main household (such as the owner or principal tenant) is defined as the “principal household.”

Principal households and households in rental apartments (non-wooden)

9%

12%

15%

16%

18%

19%

0%

5%

10%

15%

20%

25%

0

1,000

2,000

3,000

4,000

5,000

6,000

1988 1993 1998 2003 2008 2013

Principal households Rental apartments (non-wooden) Rental apartments (RHS)

(Percentage of principal households)

(in ten thousands)

14

2. Asset trend

321658000

0.0%

Source ： Ministry of Internal Affairs and Communications. 2013 Housing and Land Survey.

Note ： Excluding vacant dwellings.

Housing stock in Japan

Total number of housing

：52,102,200 units

Rented：36.5%

Owned：63.5%

Private：28.8%

Others：7.8%

Apartments

(non-wooden)

：19.6%

Others：9.1%

Total number of

private rental apartments

(non-wooden)

： 9,945,800 units

Owned or Rented Ownership Type and Structure

15

2. Asset trend

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0～19㎡ 20～29㎡ 30～39㎡ 40～49㎡ 50～59㎡ 60～69㎡ 70～79㎡ 80～89㎡ 90～99㎡ 100～119㎡ 120～149㎡ 150㎡～

持家民営借家(in thousands)


Note ：“Floor space” means the aggregate floor space of the property. “Household” is a group of people who share a home and finances, a single person, single people who share a home but not finances, or a single person who lives in a dormitory or

boarding house.

Households in owner-occupied housing and private rental housing by floor space

Households in

owner-occupied housing

Households in

private rental housing

16

2. Asset trend


Note ： Numbers of rental homes (non-Wooden) by floor space does not include vacant houses.

Households in rental apartments (non-wooden) by person and floor space

7,018,200

units 6,154,600

households

2,927,600

units 3,791,200

households

1 person

2 or more

persons

49m² or less

50m² or more

Households

by person

(9,945,800 households)

Rental apartments

by floor space

(9,945,800 units)

860 thousand households

of 2 or more persons

dwelling in rental

apartments of 49m2 or less.

55m2 is urban residential

standards for 2 persons,

which is suggested by MLIT.

17

2. Asset trend

Source ： Ministry of Internal Affairs and Communications. Housing and Land Survey.

Note ： The age group of a household is determined by the age of the head of the relevant household.

House ownership rate by age group

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

60歳以上

50～59歳

40～49歳

30～39歳

25～29歳

25歳未満

総数

60 y/o and over

50～59 y/o

40～49 y/o

30～39 y/o

25～29 y/o

under 25 y/o

Total

18

2. Asset trend

Source ： Ministry of Internal Affairs and Communications. Housing and Land Survey.

Note ： The age group of a household is determined by the age of the head of the relevant household.

Percentage of age group in owner-occupied households

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

60歳以上

50～59歳

40～49歳

30～39歳

25～29歳

25歳未満

60 y/o and over

50～59 y/o

40～49 y/o

30～39 y/o

25～29 y/o

under 25 y/o

19

2. Asset trend

384

329320

190

207

246 249

232

273

223

189181 183 177

184 183 188

223

248

175163

105 100 100

117129 126

118130 131 127

0

50

100

150

200

250

300

350

400

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

(in thousands)

Source ： Ministry of land, Infrastructure, Transport and Tourism. Statistics for the Construction of New Housing.

Note ： The total number for each year includes reinforced concrete and steel reinforced concrete buildings.

Construction of rental apartments

20

2. Asset trend

618622

612

544572

644

711

671

784

613

541

586573

505

479493

506

488494

437432

374

414421

430

485

407404

423419

423

0

100

200

300

400

500

600

700

800

900

1988 1992 1996 2000 2004 2008 2012 2016

(in thousands)

162 172

233

185

111

130

218

202 192

205

170

180

213 211

201 196

199

226

236

167

178

76

89

115

122

127

109 113 113

112 109

0

50

100

150

200

250

1988 1992 1996 2000 2004 2008 2012 2016

(in thousands)


Note ： The total number of condominium for each year includes reinforced concrete and steel reinforced concrete buildings. The total number of detached house for each year includes wooden, concrete, steel, reinforced concrete and steel reinforced concrete buildings.

Construction of condos and detached houses

Condos Detached houses

21

2. Asset trend

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Analysis ： TAS Corp.

Source ： At Home Co, Ltd.

Percentage of room type of newly built housings in Tokyo 23 wards

2 or more rooms

1 room

Single room 1K 1DK 1LDK 2K 2DK 2LDK 3DK 3LDK

22

2. Asset trend

Analysis ： TAS Corp.

Source ： At Home Co, Ltd.

Note ： Tokyo and Three Prefectures means Tokyo prefecture, Kanagawa prefecture, Saitama prefecture and Chiba prefecture.

Construction of newly built housings by room type in Tokyo metropolitan area

(units)

0

50,000

100,000

150,000

200,000

250,000

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Single room 1K 1DK 1LDK 2K 2DK 2LDK 3DK 3LDK

23

2. Asset trend

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

-5,000

0

5,000

10,000

15,0002008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

-5,000

0

5,000

10,000

15,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

5,000

10,000

15,000

20,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

20,000

40,000

60,000

80,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source ： Ministry of land, Infrastructure, Transport and Tourism. Statistics for the Construction of New Housing. Ministry of Internal Affairs and Communications. Report on Population Movement based on the Basic Resident Register.

Note ： The total number for each year includes concrete, steel, reinforced concrete and steel reinforced concrete buildings. The net inflow of residents is calculated by subtracting the total number of residents moving out of the relevant city from the total number of residents moving into the relevant city.

Construction of rental apartments and net inflow of residents into Tokyo 23 wards and major cities in Japan

Tokyo 23 wards Osaka city Nagoya city

Sapporo city Sendai city Fukuoka city

(units or

persons)

Construction of rental apartments Net inflow of residents

(units or

persons)(units or

persons)

(units or

persons)

(units or

persons)(units or

persons)

24

2. Asset trend

90.0

95.0

100.0

105.0

110.0

115.0

120.0

Jan

-11

Ap

r-11

Jul-

11

Oct

-11

Jan

-12

Ap

r-12

Jul-

12

Oct

-12

Jan

-13

Ap

r-13

Jul-

13

Oct

-13

Jan

-14

Ap

r-14

Jul-

14

Oct

-14

Jan

-15

Ap

r-15

Jul-

15

Oct

-15

Jan

-16

Ap

r-16

Jul-

16

Oct

-16

Jan

-17

Ap

r-17

Jul-

17

Oct

-17

Jan

-18

Ap

r-18

Jul-

18

Oct

-18

集合住宅（鉄骨鉄筋コンクリート）集合住宅（鉄筋コンクリート）集合住宅（鉄骨）

Source ： Construction Research Institute. Construction Cost Index.

Note ： Construction cost (net construction cost + field expenses(field management cost)) related to condominium by type of structure are indexed, 2011 as base year.

Construction cost indices (Tokyo)

Condominium (SRC) Condominium (RC) Condominium (S)

25

2. Asset trend

0

5,000

10,000

15,000

2011 2012 2013 2014 2015 2016 2017 2018

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 2018

0

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015 2016 2017 2018

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2011 2012 2013 2014 2015 2016 2017 2018


Note ： The total number of rental apartment (RC and SRC) for each year includes reinforced concrete and steel reinforced concrete buildings. The total number of rental apartment (wooden and steel) for each year includes wooden and steel buildings.

Construction of rental housings in Tokyo metropolitan area

Tokyo pref Kanagawa pref

Saitama pref Chiba pref

Rental apartments (RC and SRC) Rental apartments (wooden and steel)

(units)

(units)

(units)

(units)

26

2. Asset trend

75

100

125

2009.Q1 2010.Q1 2011.Q1 2012.Q1 2013.Q1 2014.Q1 2015.Q1 2016.Q1 2017.Q1 2018.Q1

75

100

125

2009.Q1 2010.Q1 2011.Q1 2012.Q1 2013.Q1 2014.Q1 2015.Q1 2016.Q1 2017.Q1 2018.Q1

75

100

125

2009.Q1 2010.Q1 2011.Q1 2012.Q1 2013.Q1 2014.Q1 2015.Q1 2016.Q1 2017.Q1 2018.Q1

75

100

125

2009.Q1 2010.Q1 2011.Q1 2012.Q1 2013.Q1 2014.Q1 2015.Q1 2016.Q1 2017.Q1 2018.Q1

Total Single type(18㎡～30㎡)

Compact type(30㎡～60㎡)

Family type(60㎡～100㎡)

Source ： Sumitomo Mitsui Trust Research Institute Co., ltd. and At Home Co., Ltd.. Apartment Rent Index.

Rent of rental apartments by area and room type

Tokyo 23 wards Nagoya city

Osaka city Fukuoka city

27

2. Asset trend

80.0%

85.0%

90.0%

95.0%

100.0%

都心3区東京23区名古屋大阪福岡

Source ： ARES. J-REIT Property Database (Former AJPI Service)

Note ： Period covered by index: up to Oct. 2018 ; final figures: to Apr. 2018 ; quasi-final figures: May 2018 ; preliminary estimate figures: Jun. 2018 - Oct. 2018.

Tokyo central 3 wards include Chiyoda-ku, Chuo-ku and Minato-ku.

Occupancy rate of rental apartments operated by J-REITs

Associate Decision Level

and Preliminary Figure

Tokyo Central 3 wards Tokyo 23 wards Nagoya Osaka Fukuoka

28

2. Asset trend

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

都心3区東京23区名古屋大阪福岡

(¥/Tsubo)

Source ： ARES. J-REIT Property Database (Former AJPI Service)

Note ： Period covered by index: up to Oct. 2018 ; final figures: to Apr. 2018 ; quasi-final figures: May 2018 ; preliminary estimate figures: Jun. 2018 - Oct. 2018.

Tokyo central 3 wards include Chiyoda-ku, Chuo-ku and Minato-ku.

Rent of rental apartments operated by J-REITs

Associate Decision Level

and Preliminary Figure

Tokyo Central 3 wards Tokyo 23 wards Nagoya Osaka Fukuoka

29

2. Asset trend

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Mar-2008 Mar-2009 Mar-2010 Mar-2011 Mar-2012 Mar-2013 Mar-2014 Mar-2015 Mar-2016 Mar-2017 Mar-2018

Commercial Residential

Source ： Japan Real Estate Institute. Urban Land Price Index and Wooden Frame House Market Value Index.

Note ： The average index of six large city areas: Tokyo 23 wards, Yokohama city, Nagoya city, Kyoto city, Osaka city and Kobe city are indicated.

Urban land price indices of commercial and residential in six major cities in Japan (YoY)

（%）

30

2. Asset trend

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Tokyo area Osaka area Nagoya area Average of three areas

Source ： Land Price Research Division, Land Economy and Construction and Engineering Industry Bureau, Ministry of Land, Infrastructure, Transport and Tourism. Yearly volatility of public notice of land prices.

Public notice of land prices in residential area

（%）

31

2. Asset trend

70

80

90

100

110

120

130

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Residential Office Retail Hotel

Source ： Bank of Japan. Corporate Service Price Index. Ministry of Internal Affairs and Communications. Consumer Price Index.

Note ： The residential rent figures are from the Consumer Price Index; the office, retail and hotel rent figures are from the Corporate Service Price Index. The rent levels for 1990 are given a value of 100 for comparison purposes.

Rent levels by property type

32

3. Capital trend

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

東京（城南地区）大阪名古屋福岡札幌

Investors’ expected cap rate of rental apartment (standard studio)

Tokyo (Jonan area) Osaka city Nagoya city Fukuoka city Sapporo city

Source ： Japan Real Estate Institute. The Japanese Real Estate Investor Survey.

33

3. Capital trend

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

Jan-2003 Jan-2005 Jan-2007 Jan-2009 Jan-2011 Jan-2013 Jan-2015 Jan-2017 Jan-2019

Appraisal cap rates at the acquisition of rental apartments by J-REITs

Source ： Prepared by Kenedix Real Estate Fund Management, Inc. based on Publication Documents of J-REITs.

Note ： The pink line indicates an approximate curve of degree 5. Appraisal cap rates are yields utilized in appraisals at acquisitions.

34

3. Capital trend

0

100

200

300

400

500

600

700

800

900

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

(in billions of yen) Residential Others

Amount of asset acquired by J-REITs

Source ： Prepared by Kenedix Real Estate Fund Management, Inc. based on ARES. J-REIT Databook.

35

3. Capital trend

-40

-30

-20

-10

0

10

20

30

40

不動産業（大企業）不動産業（中堅企業）不動産業（中小企業）不動産業（全規模合計）

Lending attitude of financial institutions (Diffusion index of “Accommodative” minus “Severe”)

Real estate industry(large companies)

Real estate industry(midsize companies)

Real estate industry(small-midsize companies)

Real estate industry(all company)

Source ： Research and Statistics Department, Bank of Japan. List of TANKAN (Figures by Industry).

36

3. Capital trend

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

(in billions of yen)

New loans for fixed investment to real estate sector by domestic banks

Source ： Research and Statistics Department, Bank of Japan. New Loans for Fixed Investment by Sector.

Note: ： The new loans for fixed investment for real estate sector by domestic banks (total amount of banking accounts, trust banking accounts and overseas office accounts) is described.

37

3. Capital trend

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%全銀協日本円TIBOR（1MONTH）全銀協日本円TIBOR（3MONTH）

JBA Japanese yen TIBOR

JBA Japanese yen TIBOR (1 month) JBA Japanese yen TIBOR (3 month)

Source ： bloomberg

38

3. Capital trend

-0.40%

-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

10年国債利回り

10-year JGB interest rate

10-year JGB interest rate


39

3. Capital trend

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019

東証REIT指数配当利回り 10年国債利回りイールドギャップ

Yield spread

TSE REIT Dividend Yield JGB 10 Yield Yield Gap


40

3. Capital trend

0

1,000

2,000

3,000

4,000

5,000

6,000

Dec-

2010

Mar-

2011

Jun

-2011

Sep

-2011

Dec-

2011

Mar-

2012

Jun

-2012

Sep

-2012

Dec-

2012

Mar-

2013

Jun

-2013

Sep

-2013

Dec-

2013

Mar-

2014

Jun

-2014

Sep

-2014

Dec-

2014

Mar-

2015

Jun

-2015

Sep

-2015

Dec-

2015

Mar-

2016

Jun

-2016

Sep

-2016

Dec-

2016

Mar-

2017

Jun

-2017

Sep

-2017

Dec-

2017

Mar-

2018

Jun

-2018

Sep

-2018

Dec-

2018

買入額累計買入枠(in hundred millions of yen)

Buying J-REITs by Bank of Japan

Total Buying budget

The Bank will purchase

J-REITs at annual pace of

about 90 billion yen.

October 31, 2014

Monetary Policy Meeting

Source ： Financial Markets Department, Bank of Japan. Purchases of ETFs and J-REITs.

41


02,0004,000 02,0004,000

Population pyramid

0 2,000 4,000 0 2,000 4,000

2015 (Actual) 2045 (Estimate)

100 y/o over

95-99 y/o

90-94 y/o

85-89 y/o

80-84 y/o

75-79 y/o

70-74 y/o

65-69 y/o

60-64 y/o

55-59 y/o

50-54 y/o

45-49 y/o

40-44 y/o

35-39 y/o

30-34 y/o

25-29 y/o

20-24 y/o

14-19 y/o

10-14 y/o

5-9 y/o

0-4 y/o

100 y/o over

95-99 y/o

90-94 y/o

85-89 y/o

80-84 y/o

75-79 y/o

70-74 y/o

65-69 y/o

60-64 y/o

55-59 y/o

50-54 y/o

45-49 y/o

40-44 y/o

35-39 y/o

30-34 y/o

25-29 y/o

20-24 y/o

14-19 y/o

10-14 y/o

5-9 y/o

0-4 y/o

Male Female

Source ： National Institute of Population and Social Security Research. Population Projection for Japan (2017).

42


58.00

65.32

69.31

73.35

75.92

77.72

79.55 80.75 81.34

82.39 83.27

84.02 84.66 84.95

61.50

70.19

74.66

78.76

81.90

84.60

86.30 86.99

87.64 88.72

89.63 90.40

91.06 91.35

55

60

65

70

75

80

85

90

95

1950 1960 1970 1980 1990 2000 2010 2015 2020 2030 2040 2050 2060 2065

男女

ProjectionActual

Source : Ministry of Health, Labour and Welfare. Abridged life table (for 1950). Ministry of Health, Labour and Welfare. Complete life table (for 1960 - 2015). The median projections of National Institute of Population and Social Security Research

Population Projection for Japan (2017) (for after 2020)

Note ：The figures before 1970 exclude the figure of Okinawa Prefecture. The average rest of life in 0 years old is average life expectancy.

Trend and projection in average life expectancy

(year) Male Female

43


Source : National Institute of Population and Social Security Research. Household Projection for Japan: 2010-2035 (January 2018)

Note ：The data for the periods from 2015 to 2040 are projections.

One-person households which householder is over 65 years old

6,253

7,025

7,512

7,959

8,418

8,963

0

2,000

4,000

6,000

8,000

10,000

2015 2020 2025 2030 2035 2040

(in thousands)

44


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

0

1,000

2,000

3,000

4,000

東京

都

神奈

川県

大阪

府

埼玉

県

愛知

県

千葉

県

兵庫

県

北海

道

福岡

県

静岡

県

茨城

県

広島

県

京都

府

宮城

県

新潟

県

長野

県

群馬

県

岐阜

県

岡山

県

栃木

県

福島

県

三重

県

熊本

県

鹿児

島県

沖縄

県

滋賀

県

愛媛

県

山口

県

奈良

県

長崎

県

青森

県

岩手

県

大分

県

石川

県

山形

県

宮崎

県

富山

県

秋田

県

香川

県

和歌

山県

山梨

県

佐賀

県

福井

県

徳島

県

高知

県

島根

県

鳥取

県

高齢者人口（2015年）高齢者人口（2045年）増加率

Elderly population in each prefecture

(in thousands)

Source : National Institute of Population and Social Security Research. Population Projection for Japan by region (March 2013)

Note ：Elderly people indicate 65 years old and over.

Elderly population (2015) Elderly population (2045) Growth rate

To

kyo

Kan

ag

aw

a

Osa

ka

Saita

ma

Aich

i

Ch

iba

Hyo

go

Ho

kkaid

o

Fu

ku

oka

Sh

izuo

ka

Ibara

ki

Hiro

shim

a

Kyo

to

Miy

ag

i

Niig

ata

Nag

an

o

Gu

nm

a

Gifu

Okayam

a

To

chig

i

Fu

ku

shim

a

Mie

Ku

mam

oto

Kag

osh

ima

Okin

aw

a

Sh

iga

Eh

ime

Yam

ag

uch

i

Nara

Nag

asa

ki

Ao

mo

ri

Iwate

Oita

Ishik

aw

a

Yam

ag

ata

Miy

aza

ki

To

yam

a

Akita

Kag

aw

a

Wakayam

a

Yam

an

ash

i

Sag

a

Fu

ku

i

To

ku

shim

a

Ko

chi

Sh

iman

e

To

ttori

45


4,144 4,640

7,519

8,502

9,632

10,651

12,570

13,525

196 216

315

351

391

425

483

519

0

100

200

300

400

500

0

5,000

10,000

15,000

2010 2011 2012 2013 2014 2015 2016 2017

施設数定員（右軸）

Facilities and capacity in fee-based homes

(facilities) (in thousands)

Source : Ministry of Health, Labour and Welfare. Survey of Social Welfare Institutions

Note : Serviced housings for the elderly aren’t included in fee-based homes.

Facilities Capacity (RHS)

46


112

2,772

4,205

5,160

5,885

6,463

6,877 7,089

3

89

135

166

192

211

225 234

0

100

200

0

5,000

10,000

Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Aug-2018

棟数戸数（右軸）

Source : Senior Housing Promotion Organization. System of providing information about serviced housing for the elderly

Registration situation in serviced housing for the elderly

（in thousands)Facilities Units (RHS)(facilities)

47

5. Hotel trend

出所：UNWTO「Tourism Highlights, 2017 Edition」

International tourist arrivals

0

250

500

750

1,000

1,250

1,500

1,750

2,000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

中東アフリカ米州アジア・太平洋ヨーロッパAsia and Oceania

ProjectionActual

(in millions) Middle East Africa Americas Europa

48

5. Hotel trend

5,212 6,138

6,728 7,334

8,347 8,351

6,790

8,611

6,219

8,358

10,364

13,413

19,737

24,040

28,691

31,192

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Inbound visitors

(in thousands)

Source ：Japan National Tourism Organization(JNTO). Visitor Arrivals.

Note ：The figure of December 2018 is a preliminary figure.

49

5. Hotel trend

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

訪日外国人数（右軸）増加率（アジア・オセアニア）増加率（ヨーロッパ）増加率（北米）増加率（総数）

Growth rate of inbound visitors (YoY)

(in thousands)

Inbound visitors(RHS)Growth rate of

Asia and Oceania

Growth rete of

Europa

Growth rate of

North America Total growth rate

Source ：Japan National Tourism Organization(JNTO). Visitor Arrivals.

Note ：The figures after November 2018 is preliminary figures.

50

5. Hotel trend

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

訪日外国人数外国人延べ宿泊者数

Growth rate of inbound visitors and inbound guests (YoY)

Source ：Japan National Tourism Organization(JNTO). Visitor Arrivals. Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism. Accommodation Travel Statistics Survey.

Note ：The figures of growth rate of inbound visitors after November 2018 and the Growth rate of inbound guests after November are preliminary figures.

Growth rate of inbound visitors Growth rate of inbound guests

51

5. Hotel trend

0

20

40

60

80

100

リゾートホテルビジネスホテルシティホテル

Occupancy rate of hotels

（％） Business hotelResort hotel City hotel

Source ：Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism. Accommodation Travel Statistics Survey.

Note ：”Business hotel” mainly refers to the facilities targeting business travelers, “Resort hotel” mainly refers to the facilities located in resort areas or recreation areas targeting travelers and “City hotel” refers to the facilities located in urban areas

other than those mentioned above. The figures after January 2018 is preliminary figures.

52

5. Hotel trend

12,000

14,000

16,000

18,000

20,000

22,000

Jan

-14

Mar-

14

May-1

4

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar-

15

May-1

5

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar-

16

May-1

6

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar-

17

May-1

7

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar-

18

May-1

8

Jul-

18

Sep

-18

No

v-1

8

Jan

-19

平日休前日

Charge of hotels

(yen)

Source ：Ministry of Internal Affairs and Communications. Retail Price Survey.

Note ：The charge of overnight, with breakfast and western-style room is stated.

Business day The day before holiday

53

5. Hotel trend

Guests in domestic accommodations

28 18 26 33 45 66 69 78

386 399 413

432 429

438 423 420

6.7%

4.4%

6.0%

7.2%

9.5%

13.0%

14.1%

15.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015 2016 2017

延べ日本人宿泊者数延べ外国人宿泊者数外国人宿泊者比率（右軸）(in millions)

2010 2011 2012 2013 2014 2015 2016 2017

Source ：Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism. Accommodation Travel Statistics Survey.

Note ：The figures after January 2017 is preliminary figures.

Number of Japanese guests Number of inbound guests % of inbound guests (RHS)

54

5. Hotel trend

56,616 56,059 54,540

53,172 51,778 50,628 49,590 49,024

1,568 1,576 1,556 1,562 1,545 1,548 1,562 1,596

0

500

1,000

1,500

2,000

0

20,000

40,000

60,000

80,000

2010 2011 2012 2013 2014 2015 2016 2017

ホテル・旅館施設数ホテル・旅館客室数（右軸）

Facilities and rooms in hotels/ryokans

(facilities) (rooms)

Source ：Ministry of Health, Labour and Welfare. Public health Administration Report.

Number of facilities Number of rooms (RHS)