Koh believes there is a “flight to quality” with companies moving to higher grade and better located office buildings. He notes that several large-scale projects in Central 5 Wards will be completed in 2023, with landlords expected to reduce rents to attract tenants.
UOB Kay Hian has maintained its “buy” call on Mapletree Pan Asia Commercial Trust (MPACT) (SGX:N2IU
) with a reduced target price of $1.90 from $2.02 previously, as its Japan portfolio weathers pressure from new supply.
In his report dated July 24, analyst Jonathan Koh says that vacancy rates in the Central 5 Wards, or Central Tokyo, eased 0.1 percentage points q-o-q to 4.1% in the first quarter of 2023, while Grade A rents eased slightly by 0.4% q-o-q to ¥22,550 ($211.80) per tsubo (3.31 sqm) in the same period.
