Higher borrowing costs are affecting Japan's real estate sector. The economy is adjusting to these increased costs after decades of near-zero rates. This shift has put pressure on the sector, which had been booming.

PGIM has become more selective in its approach to Japan real estate. Further details on this development are available from the source.

The change in the real estate sector is a result of the economy's adjustment to higher rates, marking a significant shift from the previous near-zero rate environment.