Oct
11
Tokyo Condo Prices May Fall 20%, Deutsche Says
By-
Mortage rate rises for two months after touching record low
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‘Collapse of this silent bubble has begun:’ Deutsche Bank
The Bank of Japan’s shift to controlling bond yields is driving up mortgage rates, prompting Deutsche Bank AG to predict Tokyo apartment prices may fall 20 percent or more by 2018.
The BOJ’s negative-rate policy was already hurting buyer sentiment, and its move to boost longer-term yields is a double-blow to the industry, according to Yoji Otani, a real estate analyst at Deutsche Bank in Tokyo. The 35-year fixed mortgage rate has climbed for two straight months after touching a record low of 0.9 percent in August, and sales of new condominiums in Tokyo this year have fallen to the lowest since the nation’s property bubble collapse in the early 1990s…
Tokyo Condo Prices May Fall 20%, Deutsche Says
