It was another busy news week as the Nikkei (and J-REITS) soared in the aftermath of the Bank of Japan’s negative interest rate decision, while the Nikkei Asian Reivew reports that some analysts think it is too early to forecast that negative rates will have a beneficial effect on the Japanese property market in the medium- to long term.
Bloomberg reports that some analysts are already calling an end to Japan’s “quiet property bubble,” but CBRE Japan (as reported in the World Property Journal) sees both J-REITs and the commercial property market benefiting.
Catch up on the week’s other Japanese residential real estate news with this summary pulled from our blog and sources around the web.
MLIT: Residential Housing Starts Down in December by 1.3% To 75,452
Ministry of Land, Industry, Transport and Tourism (links to Japanese press release)
Japan’s Ministry of Land, Industry, Transport and Tourism (MLIT) has announced that there were 75,452 residential housing units started in December 2012, a year-on-year decrease of 1.3%. The MLIT also reported that the seasonally adjusted annualized number of residential housing starts works out to 860,000 units, a year-on-year decrease of 2.2%.
Next Tokyo Masterplan 2045 Envisions Mile-High Skyscraper in Tokyo Bay
Real Estate Japan
Kohn Pedersen Fox Associates and Leslie E. Robertson Associates have proposed a master plan for a new city in Tokyo Bay, a key feature of which is a mile-high (1,609-m) residential skyscraper.
February Flat 35 Rate Drops for Second Month in a Row
Real Estate Japan
For January 2016, the interest rate for Flat 35 loans where the term is 21 years or above and less than 35 years, and where the loan amount is 90% or less than the price of the property, is between 1.480% (a drop of 0.06% compared to January) and 2.030% (also a drop of 0.06% compared to January). The majority of financial institutions which offer Flat 35 loans are offering rates of about 1.480% this month for LTVs of less than 90%.
Nest We Grow: California Design Ideas, Built in Hokkaido
Real Estate Japan
The “Nest We Grow” structure, built in Hokkaido, Japan has been named as one of the winners of the 2016 international Wood Design Awards.
Stories on the Negative Rate Decision
Tokyo stocks spike after BOJ adopts negative interest rates
Nikkei Asian Review
TOKYO (Kyodo) — Tokyo stocks ended sharply higher Friday [January 29th], with the Nikkei index briefly rising over 3 percent, after swinging wildly following the Bank of Japan’s decision to adopt negative interest rates.
Japanese real estate REITs surge on news of negative interest rates
Nikkei Asian Review
TOKYO — The market for real estate investment trusts boomed here Friday [January 29th] as news that Japan’s central bank will bring interest rates on deposits below zero spurred expectations of higher returns.
What you need to know about the Bank of Japan and negative interest rates
MarketWatch
Here’s what you need to know about negative rates and the Bank of Japan.
Positive Forecasts
Negative rates in Japan are a positive for property
Australian Financial Review (Subscription Required)
The Bank of Japan’s move to negative interest rates will be a positive for Japan’s already well-performing commercial real estate sector.
Japan’s Negative Interest Rate Policy Shift to Benefit Property Sector
World Property Journal
Forecasts from Hiroshi Okubo, Head of Research for CBRE Japan, including “Cheaper financing and the weaker Yen are expected to boost corporate sentiment and ensure office demand remains solid. Major office markets will therefore continue to see tight supply and demand. CBRE Research reiterates its view that Grade A office rents in Tokyo will rise by approximately 10% over the next couple of years.”
Negative Forecasts
Japan’s “Quiet Property Bubble” is Coming to an End
Bloomberg
In Japan, the number of property transactions has tumbled, rents have been muted and inflation expectations have waned. That’s prompting a growing number of analysts and economists to turn bearish on property prices, which have been recovering since Prime Minister Shinzo Abe came to power in 2012.
Japan real estate Property sector skeptical about bump from BOJ move
Nikkei Asian Review
TOKYO — Japanese property companies are starting to see signs of a change in their earnings environment. A shadow is being cast over once-rosy outlooks for one of their most important sources of income, condominium sales, which have so far helped them achieve stable growth.
Good news for AirBnB-Style Rentals
Tokyo’s Ota Ward gives OK to renting private homes, rooms to tourists
Japan Times
Ota Ward, Tokyo, on Friday started accepting applications from residents and businesses to let rooms or homes to visitors as a way to alleviate hotel shortages amid an increasing number of foreign tourists.
For last week’s summary, please see this post.
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