Japan Chemical Trading Blog
Condominium Sales in Tokyo Down
According to the announcement of the Real Estate Economic Institute Co., Ltd. on August 12th, the number of condominiums sold in the Tokyo metropolitan area in July fell about 20% year-on-year to 4,222.
Though, until recently, the sales of condominiums seemed to have been strong, it might be reasonable to consider that the housing demand is going to fall in the mid- and long-term in Japan unless some measures are taken, where the birthrate goes on falling and the population is aging.
Interest rates in Japan have been at a historically low level as the Bank of Japan keeps purchasing government bonds so that a mortgage with an interest rate less than 1% is advertised, yet, how far will interest rates fall, real estate prices will not keep rising unless prospects for the structural decline in birthrate improve and a way to growth is paved.
The funding requirement diffusion index indicating the funding requirement for mortgage was -17 in July, the lowest since the survey started.