IPD index shows returns to end June are just 8.4%, with capital growth at only 3.3%

Japan's commercial property market has continued its downward slump, new figures out today show.

Returns for the year to the end of June showed a total return of 8.4%, down from 9.1% in May, according to the Investment Property Databank's Japan monthly indicator. Capital growth was just 3.3%, year-on-year.

Office property held up best over the period, with a capital return of 3.1%, compared with 7.6% in the six months to December. Retail and residential sectors were at minus 1.8% and minus 1% respectively.

In all sectors, properties in Tokyo fared better than those outside the capital.