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Bloomberg
As institutional investors scour the globe in search of safe havens from the post-Brexit turmoil, property consultancy Jones Lang LaSalle Inc. has a piece of advice: Go East.
Topping the list of attractive investments is Japan, where some residential real estate projects deliver effective yields as high as 7 percent, taking into account the nation’s negative interest rates, Joseph Tsang, JLL’s managing director of residential and investment, said at a briefing in Hong Kong on Monday. Those returns apply to projects in second-tier markets such as Osaka and the island of Hokkaido.
“The returns in Japan are very high and the borrowing cost is low, so the spread is very obvious,” he said.
Britain’s vote to leave the European Union on June 23 roiled global markets and left investors seeking the safety of securities such as gold and Japan’s yen. U.K. property funds with about 18 billion pounds ($23.4 billion) of assets froze withdrawals as investors sought to dump real estate holdings in the aftermath the vote.