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Market Turning for J-REITs?
April 10--The past five years has been good times for the J-REIT market (Japanese Real Estate Investment Trusts). Japan's low interest rates have allowed these Trusts to thrive, giving investors a solid, cash-yielding investment. A recent decision by the Bank of Japan to scrap its ultra-loose, zero interest rate policy has raised the specter of higher rates, possibly signaling the end of the of the good times for J-REITs. Market watchers expect that the Bank of Japan will raise short-term interest rates during the third quarter 2006 period. Additionally, higher interest rates will likely impact the overall market, as real estate faces competition for investor money attracted to government bonds and other yen-denominated instruments that will have higher yields with increased interest rates.
Real a more in-depth analysis in a April 9 article in the International Herald Tribune by Miki Tanikawa, featured at BlackEnterprise.com. |
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