Optimism spreads across property market

The state of Japan's property market - particularly that of Tokyo - has long been considered a reliable barometer of the national economy. And, with the real estate sector awash with optimism at the moment, that positivity appears to be catching on elsewhere.

The latest addition to Tokyo's ever-changing skyline formally opened on June 11, with Mori Building unveiling the Toranomon Hills building near Shimbashi station. Designed to appeal to multinational companies seeking a prime location in the city, the 52-storey tower uses cutting-edge, pillarless office spaces and incorporates one of Tokyo's most expansive conference facilities, top-of-the-range residences, 25 restaurants and a 6,000-square-metre pocket of open space and greenery.

The sleek structure will also house the Andaz Tokyo, the Hyatt Group's first boutique hotel in Japan, which aims to attract business visitors as well as leisure travellers.

Toranomon Hills also fits in with the national government's plans to enhance the broader infrastructure of Tokyo, a campaign that has taken on added significance after the city was selected to host the 2020 Olympic Games, and underlines the broader resurgence of the property sector.

Analysts in Tokyo are confident that all sectors of the market have consigned the worrying last few years to the past and are looking ahead. The market is entering a positive new cycle, banks are looking to lend again, sellers are making optimistic noises, and investors are making their moves.

That newfound desire is a result of the efforts of Prime Minister Shinzo Abe's government to inject new life into the national economy. The indicators show a positive impact, with economic growth forecasts converging at the 1.5 to 1.8 per cent mark.