Investing in the Japanese Property Market - A new Housing Bull Market Emerges
Housing-Market / Analysis & Strategy Nov 06, 2006 - 12:00 AM GMTBy: Nadeem_Walayat
The Japanese property 16 year bear market increasingly looks like it has come to an end. Presenting an excellent opportunity for investors to get in on a new housing bull market just when other property markets around the world are showing signs of peaking or like the US market are actually falling.
MarketOracle looks at how to invest in Japanese Property Market for the long-term.
Already investors have been active in the property sensitive Japanese stocks as the market gears up to the resumption of the property bull market. and the country's real estate investment trust (REIT) market, that was launched in 2001. The Topix Real Estate Index is up nearly 60% over the past year, and the Investment Trusts Assn. reports that investment in Japan's REIT market has increased 77% to $42.7 billion as of August, compared to the year-ago period.
Thus investments can be made into stocks that make up the Topix Real Estate Index, or an investment trusts that spreads the risks amongst many stocks including direct investments into actual commercial properties i.e. REIT's.
Inline with the Nikkei the The Topix Real Estate Index has already rallied somewhat as the chart shows. Since the breakout in Sept 05, the index gained 100%, and created an up channel with current support at 1580 and resistance at 2250. The current price level of 1900 is approximately in the middle of the trend. In the immediate future the index could suffer from volatility and correct lower to 1580. But if we consider this as the beginning of a long-run secular bull market ending a period of some 16 years of deflation, the Topix could continue within the up channel for several more years.
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