Abstract
After the bubble economy, financing of urban development has been changing dramatically in Japan. It is one of the main reasons that banks prefer corporate loan to non-recourse loan. This paper focuses on risk/return status of tangential portfolio, one of efficient portfolio, and then asset allocation of office, residential and retail. By using income gains of individual cities, an efficient frontier curve is depicted. It is FY1992-2001; including the end of bubble economy and with that effect. We can find some specifications in/out Metropolitan area in terms of risk, return and asset allocation.
