Japan's land prices have been falling for 17 years, but prices in central Tokyo have started to rise since 2005. There are 41 listed J-REITs on Tokyo stock exchange, more than half of them are trading at below their net asset value. I believe the fall of J-REIT is caused by cash stripped U.S. investment banks selling their foreign holdings (at great loss) to finance their balance books. The dividend yield on J-REITs are extremely stable (they are required by law to distribute 90% of income at least) and have become mouth watering due to depressed prices. For example, Re-Plus REIT, Joint REIT, yields appx. 9% and MID reit, DA Office, LaSalle japan (formerly eAsset) also have solid yields of around 8%. Japanese themselves tend to be quite pessimistic about their future, the result of 17 years of economic and asset prices decline (know as the "lost decade"). But i think as the No.2 economy in the world, current price levels are way too low. What do you guys think?