Competition leads to higher prices, and rapid changes in real estate prices may result in an adverse correction. I am a bit concerned about the future. When interest rates go up, cash flow may shrink tremendously.
Our focus is office properties and diversifying into housing, commercials and warehouses. In addition, we may need to think about further diversification of property types, such as hotels, hospitals, and nursing home-type of properties.
It's hard to imagine Morgan Stanley would shift away from Japan so easily, but it would be good news for other investors here.
Japan has become a lower-risk, lower-return market. China may be more risky, but offers bigger chances.