Transition and forecast for land leasing market (total value of land leasing transactions)
Expansion of land leasing transactions
- After the collapse of Lehman Brothers, the understanding of the stability of land leasing has spread, and the value of land leasing transactions has increased by about 5.4 times in about 10 years from 2009.
- On the other hand, land leasing only account for 2.4% (597.6 billion yen) of the total assets acquired by J-REITs (total value) of 25.2 trillion yen, and 5.8% (253.4 billion yen) of the total assets acquired by private REITs of 4.3 trillion yen, so there is room for further expansion of the land leasing market.
- The COVID-19 pandemic caused focus to once again be placed on the stability of land leasing. REITs and private funds are tending to increase investment in land leasing, and further expansion of the market size is expected in the future.
Sale of land by our company
- In 2010, we sold three properties to Japan Retail Fund Investment Corporation (currently Japan Metropolitan Fund Investment Corporation), which led to an increase in land leasing acquisition by J-REITs. The number of J-REIT and private REIT land leasing acquisitions (total amount) by December 2021 has increased to 299 properties and 851 billion yen.
- The expansion of the land leasing market has led to an increase in the number of external buyers and favorable terms for properties that JINUSHI REIT has not acquired among the properties sold by our company (total results from April 2016 to December 2022: 71 properties)
*Note: 1. Calculation for the total transaction amount of land leasing from 2001 to 2021 is based on published transaction cases
2.The average year-on-year growth rate of total land leasing transactions from 2016 to 2021 (amount: +12.7%, number of transactions: +18.9%) remains at the same level. We are forecasting based on the assumption that the transaction amount of land leasing will continue to grow after 2022.
3.When calculating the land leasing market size, we conservatively assumed the ratio of publicized transaction cases using data such as the Property Price Index of the Ministry of Land, Infrastructure, Transport and Tourism, and then calculated the transaction amount including undisclosed cases.