{"id":28919,"date":"2016-10-07T14:09:15","date_gmt":"2016-10-07T07:09:15","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/why-condo-sales-in-tokyo-crashed-to-24-year-low\/"},"modified":"2016-10-07T14:29:53","modified_gmt":"2016-10-07T07:29:53","slug":"why-condo-sales-in-tokyo-crashed-to-24-year-low","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/why-condo-sales-in-tokyo-crashed-to-24-year-low\/","title":{"rendered":"Why condo sales in Tokyo crashed to 24-year low"},"content":{"rendered":"


\nEven with fixed mortgage rates at record lows, the Japanese shy away from apartment purchases
\nMinato-ku, Tokyo. Krunja\/Shutterstock
\nThe sales volume of new Tokyo apartments hit 13,303 units between January and August this year, the lowest number of transactions in the Japanese capital since the housing bubble burst of 1992, Bloomberg reported, citing data from\u00a0the Real Estate Economic Institute Co.
\nThis means a plunge of 32 percent for\u00a0new condominium sales in and around Tokyo from the same period last year. Such flagging interest in the city\u2019s\u00a0condos is occurring against a backdrop of historically low fixed mortgage rates, now being offered as low as 1.06 percent for a 35-year term, data from the Japan Housing Finance Agency showed.
\nThe relative standstill of wage inflation has proven to be the major deterrent for potential home buyers, according to Takashi Ishizawa, senior researcher at Mizuho Securities Co. \u201cIf you look at interest rates, historically speaking there has never been a better time to buy, but developers without really good properties are having trouble selling,\u201d he told Bloomberg.
\nBase wages in Japan have risen just 0.2 percent in 2016, Bloomberg reported.
\nMore: Is time running out to buy in Tokyo?
\nWages have stagnated partly as a result of the Bank of Japan\u2019s recent easing policies, which have led to subzero interest rates over recent months. Reviewing the policy in September, the central bank noted that Japanese lenders may grow reluctant to accommodate mortgagors in light of the sub-zero rates and their consequently reduced margins.
\n\u201cWhen wage growth is flat, you reduce purchasing power, and then you have weaker consumption,\u201d Kohei Iwahara, an economist at Natixis in Japan, told Bloomberg. \u201cIt will make it even more difficult for the Bank of Japan to achieve its inflation target.\u201d
\nThere may still be tempting offers for buyers in Tokyo\u2019s luxury property market though. Average prime property values in the city declined 4.4 percent to USD5.7 million in the year to June, according to Swiss bank Julius Baer\u2019s recently released Wealth Report: Asia.
\nRead next: Not even the 2020 Olympics is helping Tokyo condo prices
\n
\nSource : property-report.com
\nRead more…Why condo sales in Tokyo crashed to 24-year low<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Even with fixed mortgage rates at record lows, the Japanese shy away from apartment purchases...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-28919","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-7wr","jetpack-related-posts":[{"id":50311,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/things-are-looking-up-for-tokyo-property\/","url_meta":{"origin":28919,"position":0},"title":"Things are looking up for Tokyo property","date":"March 31, 2017","format":false,"excerpt":"\r Sigrid Zialcita, Cushman & Wakefield, says low mortgage rates and a weak Japanese yen make the housing market in Japan attractive.\r \r Source : cnbc.com\r Read more...Things are looking up for Tokyo property","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40884,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tokyo-office-boom-fades-with-more-space-but-fewer-workers\/","url_meta":{"origin":28919,"position":1},"title":"Tokyo office boom fades with more space, but fewer workers","date":"January 17, 2017","format":false,"excerpt":"\r Commercial property prices in Tokyo, a bellwether for Japan\u2019s market, look to have peaked as the capital faces a glut of new offices even as the number of office workers is set to decline. 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Image credit: superidoljp (Flickr) With foreign buyers put off by an appreciating yen, the average condominium price per unit\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":83109,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tokyo-hotel-partners-with-airbnb-style-lodging-operator-to-reap-opportunities\/","url_meta":{"origin":28919,"position":4},"title":"Tokyo hotel partners with Airbnb-style lodging operator to reap opportunities","date":"March 19, 2018","format":false,"excerpt":"\r If you can\u2019t beat them, join them. That is exactly what a Tokyo hotel has decided to do by agreeing to work with the operators of budding Airbnb-styled Japanese home-share accommodation called \u201cminpaku\u201d. 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