The rally that sent Japanese real estate investment trusts to their highest in almost seven years appears short-lived as more state buying paves the way for higher taxes, said Deutsche Bank AG and Nomura Securities Co.
The Tokyo Stock Exchange REIT Index jumped as much as 5.3 percent Tuesday but fell back to close 1.1 percent up on the day, after the nation's pension fund and the Bank of Japan said they would boost property-related investments.
The gains will not be sustained if the Abe administration increases the consumption tax a second time, Deutsche Bank and Nomura analysts said.