Tosei : 【Appendix】Real Estate Market Conditions

Appendix

Financial Results For the Fiscal Year 2022

Tosei Corporation	[Reference Materials]
Real Estate Market Conditions
Tokyo Stock Exchange, Prime Market Code : 8923
Singapore Exchange, Mainboard Code : S2D
January 12, 2023

Copyright © 2023 TOSEI CORPORATION, All Rights Reserved.

[Reference Materials] Real Estate Market Conditions

• Revitalization Business Market I	ｰ P.3
• Revitalization Business Market II	ｰ P.4
•	The Population of Tokyo	ｰ P.5
• Number of Establishments in Tokyo	ｰ P.6
• Real Estate Transactions by Listed Companies	ｰ P.7
•	Published Land Price	ｰ P.8
• The Investment Cap Rate from Transactions	ｰ P.9
•	Interest Rates in Japan	ｰ P.10
• Domestic Bank Lending for Real Estate Industries	ｰ P.11
• Financial Institutions' Stance on Lending to Real Estate Industries	ｰ P.12
•	Yield Gap	ｰ P.13
•	World's Real Estate Investment Volume	ｰ P.14
•	Global REIT Market	ｰ P.15
• Real Estate Fund Market	ｰ P.16
• Tokyo Stock Exchange REIT Index	ｰ P.17
•	Property Acquisition by J-REIT	ｰ P.18
•	Crowdfunding Market	ｰ P.19
• STO (Security Token Offering) Market	ｰ P.20
• Rental Office Building Market I	ｰ P.21
• Rental Office Building Market II	ｰ P.22
• Rental Office Building Market III	ｰ P.23
• Rental Office Building Market IV	ｰ P.24

•	Rental Apartment Market I	ｰ P.25
•	Rental Apartment Market II	ｰ P.26
•	Rental Apartment Market III	ｰ P.27
•	Rental Apartment Market IV	ｰ P.28
• Construction Costs per Tsubo	ｰ P.29
• Price of Major Building Materials in Tokyo	ｰ P.30
•	Newly-built Detached House Market	ｰ P.31
• Newly-built Condominium Market I	ｰ P.32
• Newly-built Condominium Market II	ｰ P.33
•	Pre-owned Condominium Market I	ｰ P.34
•	Pre-owned Condominium Market II	ｰ P.35
•	Hotel Market I	ｰ P.36
•	Hotel Market II	ｰ P.37
•	Hotel Market III	ｰ P.38
•	Hotel Market IV	ｰ P.39
•	Logistics Market I	ｰ P.40
•	Logistics Market II	ｰ P.41
•	Logistics Market III	ｰ P.42
•	Logistics Market IV	ｰ P.43

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2

Revitalization Business Market I (Real Estate Stock Market)

There are about 160,000 office buildings and apartments in Tokyo which is an abundant stock.

Office Buildings and Apartments in Tokyo : Approx. 160,000 buildings

Office Building & Commercial Facilities stock, etc.	Income generating apartment stock
81,429 Buildings*1	79,975 Buildings*2

*1 Sum of office, store, department store and bank building numbers from Tokyo Metropolitan Government Bureau Statistics Division of General Affairs "Tokyo Metropolitan Statistical Yearbook 2020" *2 Building number from Bureau of Urban Development Tokyo Metropolitan Government "Condominium fact-finding survey " (Mar. 2013 )

	Real estate stock in Japan
	Approx. ¥2,838 trillion*3	Publicly held real estate
Corporate real estate: Approx. ¥523 trillion*4	Approx. ¥980 trillion*3
Income-generating real estate:*5		Local Public Entities
	Approx. ¥513 trillion*3
Approx. ¥272 trillion
J-REITs		Others Approx.¥1,335 trillion
Tokyo	(Residential properties, etc.)
Approx. ¥21.5 trillion*6
Approx.
	Income Generating Buildings

Private Funds	¥148 trillion*4
Tokyo
Approx. ¥26.5 trillion*6

*3 prepared by Tosei based on Ministry of Land "National Accounts for 2020"
*4 Ministry of Land, Infrastructure and Transport Policy Officer "Corporate land · Building basic survey 2018"
*5 NLI Research Institute "Japan's Real Estate Investment Market Size Mar., Apr., May 2021"
*6 Sumitomo Mitsui Trust Research Institute Co., Ltd. "Survey on Private Real Estate Funds in Japan Jun. 2022"
Source : prepared by Tosei based on Ministry of Land, Infrastructure and Transport "Current situation of real estate investment market" (2 Aug. 2019)
Copyright © 2023 TOSEI CORPORATION, All Rights Reserved.	3

Revitalization Business Market II (Small to mid-sized real estate transaction volume in the Greater Tokyo Area)

Theブルrealーオestateーシャtransactionン・ストラテジvolumeー is about ¥10 trillion per year (Tosei's estimation) for small- to mid-size properties, a massive stock.

The real estate transaction volume

(properties priced lower than ¥1 billion) in the Tokyo Metropolitan area is estimated

to be approx. ¥10 trillion.*1

(Offices, apartments, commercial facilities, and warehouses)

*1 Source : Estimates by Tosei based on the data from Real estate brokerage companies "real estate brokerage results", Ministry of Justice : "The number of real estate registration" and our Company's sales information.

If Tosei accounts 1% of the market,

Tosei will achieve ¥100 billion revenue.

The above amounts were calculated using information available as of end of Nov. 2022.

These amounts may change depending on the information that Tosei acquires in the future.

Copyright © 2023 TOSEI CORPORATION, All Rights Reserved.

4

The Population of Tokyo

The population of Tokyo is to decline slowly after peaking in 2025.

• Outside the 23 wards

							◼ The 23 wards of Tokyo
(10 thousand			1,406							1,422	1,418
people)																						1,397
																				1,351											1,401 1,404							1,365
1,279	1,315																													427			419			406
								432	431	432								391
																				424
					421
413
1,000

500
								994		999
										990
			974								974
		927	969	972
	865	894

Forecast (as of Feb. 2020)

0

(year)

*Population as of October 1st of each year.

Source : prepared by Tosei based on Statistics Division, Bureau of General Affairs "TOKYO STATISTICAL YEARBOOK"

Tokyo's population continued to grow

due to population inflows, but in 2021, it decline, unable to compensate for the natural decline due to

the slowdown in population inflow

due to the COVID-19 disaster. However, in 2022 saw a return to Tokyo, and there are signs of a population

inflow at present.

5

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