Goldman Sachs Group Inc. will add to its ¥2 trillion in Japanese properties acquired since 1998, betting real estate is short of its peak after a two-year rally.

Goldman, Wall Street's most profitable securities firm, plans to invest about ¥200 billion this year in Japanese property, said Toshinobu Kasai, a managing director who oversees the firm's real estate investments in the country.

"Capital inflows will likely increase as various funds continue to be attracted to the Japanese property market," Kasai said in an interview. "As competition intensifies for these funds, some will enter and some will have to retreat."