Tourism Spike in Tokyo Boosted Retail Property Sector in 2015
Tokyo's retail property market enjoyed a positive upswing in sales in 2015, according to a World Property Journal report.
From the CBRE Tokyo Retail Services report, noted inbound tourism growth drove the sales boom retailers experienced during Q4 of last year.
With few available spaces in significant locations, an ideal observed supply-demand balance has been achieved. Sports and luxury brands in particular were confident opening their stores in the Ginza district. Rents also rose to high levels in the district's secondary areas as well.
A number of new store openings generated huge publicity in Omotesando, and a number of pop-up stores have also opened for business in line with the district's status as an emerging trendsetting locale. Demand in the Shinjuku area for new stores has even outdone the number of vacant units available, as stated in the same report.
In a separate report by CBRE Japan, Senior Director for CBRE Tokyo's Retail Services Team Akihisa, Sato said, "The number of foreign tourists visiting Japan in December rose by 43.2 percent y-o-y to a December record, while the number of Chinese tourists rose at an accelerating rate, up 82.7 percent y-o-y after a 75.0 percent rise in November."
"For retailers who have had successful branding strategies in China and elsewhere in Asia, duty-free sales have become a larger proportion of their overall sales over the past year. An increasing number of retailers will try to improve their brand recognition throughout Asia in order to win over customers before they come to Japan. The success or failure of their inbound strategy is likely to affect some retailers' store opening programs," added Sato.
Sato also noted that the increasing number of foreign tourists as well as expanding consumption among rich Japanese citizens were influential to retailers' expansion plans, as stated in the same report.