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Corporate Transaction Volume Index: April 2023 Highlights

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has recently published the Corporate Transaction Volume Index based on registration data, which reflects the transfer of ownership of existing real estate properties acquired by corporations. For April 2023, the index has shown a notable increase of 4.4% compared to the previous month, highlighting a positive trend in corporate real estate activities across the nation.

Key Data Points

• - The adjusted figure for the index stands at 277.6 for April 2023, marking a 4.4% rise compared to the previous month.
• - The residential property segment shows a slight downturn, with a 0.7% decrease in its adjusted figure, which now stands at 287.7.
• - Notably, single-family homes recorded a minor reduction of 0.02% to 336.3, while condominium units experienced a 1.4% decline, dropping to 245.1.
• - In stark contrast, non-residential property transactions soared by 20.2%, reaching an adjusted figure of 265.9.

The Corporate Transaction Volume Index is a vital barometer of corporate engagement in the real estate sector. It is defined as the number of ownership transfer registrations caused by the sale of buildings, specifically for properties acquired by corporations, excluding new residential and non-residential property transactions.

To ensure comparability with the existing residential volume index, similar methodologies are applied in data collection. The MLIT has also noted a notable increase in corporate transactions involving condominiums, leading to an analysis that distinguishes between transactions over and under 30 square meters.

The adjustment process for seasonal variations ensures that monthly indices present a more accurate reflection of real estate activity. The latest data indicates a need for vigilance in understanding market fluctuations, particularly in the residential sector, which has experienced mixed results.

The Corporate Transaction Volume Index provides significant insight into corporate investments in real estate. As corporations navigate economic challenges, the dynamics observed in this index can signal broader trends impacting the commercial real estate market. It serves as an essential reference for investors, analysts, and stakeholders within the real estate community, offering insights into the changing landscape of corporate real estate investments.

For further information and detailed analysis, visit the MLIT Official Website.

Contact Information
For inquiries, please contact:

• - Real Estate Market Development Section, Economic Bureau, Ministry of Land, Infrastructure, Transport and Tourism
• - Telephone: 03-5253-8111 (Extension 30214) / Direct line: 03-5253-8375

This report emphasizes the importance of monitoring the Corporate Transaction Volume Index as an essential tool for understanding the performance and trends of corporate real estate transactions in Japan.