Tokyo BOJ-Fueled Property Boom Prices Many Buyers Out of Market
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Apartment offerings in city drop 10% in 2015 as prices soar 9%
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Mitsubishi UFJ cut variable mortgage rates to record 0.625%
Rich buyers taking advantage of record low borrowing costs have pushed prices in Tokyo beyond the reach of many ordinary buyers, taking the wind out of property sales.
While the average sales price of an apartment in greater Tokyo rose 9.1 percent to a 24-year high of 55.2 million yen ($467,000) in 2015, offerings dropped by almost 10 percent, according to data by the Real Estate Economic Institute Co. Deals of properties with a price tag of 100 million yen or more climbed 86 percent, while those of cheaper homes under 50 million yen fell by 18 percent. The nation’s biggest banks including Mitsubishi UFJ Financial Group Inc. lowered variable mortgage interest rates to a record low of 0.625 percent this month…
Tokyo BOJ-Fueled Property Boom Prices Many Buyers Out of Market
