IDEAS home Printed from https://ideas.repec.org/p/boj/bojrev/rev22e07.html
   My bibliography  Save this paper

Flows of Overseas Funds in the Real Estate Market

Author

Listed:
  • Yoshihiko Hogen

    (Bank of Japan)

  • Yoshiyasu Koide

    (Bank of Japan)

Abstract

The global real estate fund market is expanding against the backdrop of inflows from investment funds. Japan's real estate fund market has also experienced inflows from foreign investment funds, which now hold a share equivalent to almost 20 percent of the total market value of J-REITs. These investment funds have actively invested via cross-border transactions and may adjust their fund flows in response to manifestations of global risk factors such as those reflected in adjustments in global financial markets. This review first gauges cross-border investment flows of these investment funds to real estate funds using fund-level data, where funds are sorted depending on their location of the registration and investment destination. It then investigates how changes in the economic and financial environment affects investment flows and the real estate prices in each region. The results show that real estate funds in many regions experience a decline in inflows from investment funds and price drops of the local real estate funds as a result of deterioration in global financial conditions or rises in the U.S. interest rate, with the effects particularly pronounced in Japan. These results also indicate that when considering developments in the commercial real estate (CRE) market in Japan, it is essential to look into changes not only in domestic factors but also in global financial conditions, which may have an important impact on investment funds' portfolio allocation decisions.

Suggested Citation

  • Yoshihiko Hogen & Yoshiyasu Koide, 2022. "Flows of Overseas Funds in the Real Estate Market," Bank of Japan Review Series 22-E-7, Bank of Japan.
    • Handle: RePEc:boj:bojrev:rev22e07
    as

    Download full text from publisher

    File URL: https://www.boj.or.jp/en/research/wps_rev/rev_2022/data/rev22e07.pdf
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boj:bojrev:rev22e07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bank of Japan (email available below). General contact details of provider: https://edirc.repec.org/data/bojgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.