RESEARCH • June 2024

Wax on, wax off

Revisiting fundamentals in the Japan multifamily sector.


The way of the Kihon (基本) 

In the iconic 1980s film “The Karate Kid”, Mr. Miyagi imparts profound wisdom onto the young protagonist Daniel by persisting with simple and repetitive tasks, such as waxing cars, which are fundamental in mastering his pugilistic skills. This principle of focusing on the basics (kihon) is not only a cornerstone of Japanese culture and its martial arts, but also an invaluable strategy in the world of investment, particularly within the Japan multifamily market. 

Clearly, investing in the Japan multifamily sector is not akin to repeating the motions of “wax on wax off”. Just as Daniel discovers that mastery in karate is built on a solid foundation, investors in Japan’s multifamily sector will realize that a steadfast commitment to understanding and applying basic market principles is key to long-term success.  



It is timely to address recent developments and revisit the underlying drivers of the Japan multifamily sector. For experienced investors, this may appear to be rudimentary, but it is useful to have a sense check. We are convinced this can help inform investment decisions especially as investor interest remains elevated. 




Research & Strategy