Someone asked me why I don't consider buying new built Japanese apartments for investment since I feel that a reflation is underway in the country. Why Saizen REIT? The value of the residential properties owned by Saizen REIT is below their replacement cost. Buying at a discount to valuation is great but buying at below replacement cost is even better! When I invest in Saizen REIT now, I am buying at a discount to valuation buildings which are valued below replacement cost! How crazy is that? Want to compete with Saizen REIT and other incumbents by building new similar apartment blocks? Must be bonkers to do so......