1. Overall view
The monthly index is 63.
2. FX
The month included both extreme yen weakness and a meaningful rebound after intervention.
3. Property
Investment activity is strong, but prime yields are historically low.
4. Exit
Rate normalization increases 3-5 year valuation risk.
5. Overseas investors
USD and CNY holders still possess strong purchasing power.
6. Risks
FX reversal, higher rates and cap-rate expansion are key risks.
7. Conclusion
Focus less on a cheap yen and more on sustainable income.