ooking ahead, Japan’s economic growth is expected to be driven largely by domestic demand, but the momentum of corporate governance reforms and China’s recovery are key to Japan’s sustained growth outlook. The housing market is forecast to remain resilient with stable vacancies and rising rents in key cities. The luxury housing sector benefits from a large and growing base of high-net-worth individuals and keen foreign investor interest. Hotels have seen a strong recovery in line with inbound tourism trends. Limited new supply and positive fundamentals support continued growth in the hospitality sector, attracting global hotel companies to expand their brands in Japan. Favourable interest rates and yield spreads make Japan real estate attractive to investors. Risks include weak external demand, supply chain disruptions, and monetary/exchange rate shocks.