Home RSS
Real Estate
Cars

Japan Property Market Recovery Has Been Slow To Materialize

Property Wire
A two-bedroom two-bath loft apartment in Central Amsterdam is on the market for 995,000 euros (about $1.4 million).

A two-bedroom two-bath loft apartment in Central Amsterdam is on the market for 995,000 euros (about $1.4 million).


The slowdown of housing starts in Japan’s real estate market is bankrupting the construction industry, and could soon force the nation to cede its position as the second biggest global economy. Japan’s housing sector faces a steep uphill climb to recoup prices that have fallen 40% from their peak. Job troubles are delaying real recovery in Japan, despite government real estate stimulus programs.



New property construction in Japan fell to the lowest level in 2009 since the nation celebrated its postwar recovery by hosting the Olympics in 1964, as builders were hit by dwindling household incomes and sustained deflation.

The latest figures from the Land Ministry show that construction companies broke ground on 788,410 homes last year, 27.9% fewer than in 2008, although the pace of decrease eased in the past four months of 2009 with housing starts falling just 15.7% in December from a year earlier.
 
The report highlights a decline that’s likely to see Japan lose its place as the world’s second-largest economy to China this year. It also indicates that government programs to stimulate the real estate market have been unable to reverse expectations that property prices will fall, keeping households away from investing in real estate.
 


Source








 
_________________________________________________________________________
 
Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.