Japan Home Prices Slump to 24-Year Low as Recession Deepens
Started by stevejhx
almost 17 years ago
Posts: 12656
Member since: Feb 2008
Discussion about
March 23 (Bloomberg) -- Japanese residential land prices fell to a 24-year low as job losses and wage cuts discouraged homebuyers, while tighter credit markets choked off funding for property developers. Residential land prices fell 3.2 percent in 2008 to the lowest since 1984 and average commercial land prices dropped 4.7 percent to a three-year low, the Ministry of Land, Infrastructure,... [more]
March 23 (Bloomberg) -- Japanese residential land prices fell to a 24-year low as job losses and wage cuts discouraged homebuyers, while tighter credit markets choked off funding for property developers.
Residential land prices fell 3.2 percent in 2008 to the lowest since 1984 and average commercial land prices dropped 4.7 percent to a three-year low, the Ministry of Land, Infrastructure, Transport and Tourism said today in a report. Overall property prices declined 3.5 percent, erasing two years of gains that followed a 15-year slump.
The decline in residential land values, which are about half of what they were at the height of Japan’s bubble economy in 1991, may continue as the recession deepens. The central bank forecasts the sharpest economic contraction in more than 60 years as an unprecedented decline in exports forces companies to cut production and fire workers.
http://www.bloomberg.com/apps/news?pid=20601068&sid=abSwutZwawMA&refer=home
Of course this could NEVER happen in Manhattan, which is impervious to all economic forces in the world, and real estate, as in Oz, only ever goes up in value.
LMAO.
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Response by eric_cartman
almost 17 years ago
Posts: 300
Member since: Jun 2007
something must be wrong. it's a well known fact that japan is just a set of four islands, and we know they are not making any more land .. so real estate prices only go up.
steve, you liar, you ..
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Response by stevejhx
almost 17 years ago
Posts: 12656
Member since: Feb 2008
You're right, e_c: land is a valuable commodity. Maybe they built fake islands, like Abu Dhabi.
Oh. That didn't work out too well either, did it?
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Response by falcogold1
almost 17 years ago
Posts: 4159
Member since: Sep 2008
This is the shape of things to come right here on sunny Manhattan Island! 1984 all over again...damn they broke my car window and stole my radio!
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Response by uppereast
almost 17 years ago
Posts: 342
Member since: Nov 2008
stevejhx, this is getting so tiring. You post whatever bad news you find and Steve posts whatever good news he finds. Just by the title it's always obvious who it is.
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Response by bugelrex
almost 17 years ago
Posts: 499
Member since: Apr 2007
stevejhx,
Out of curiosity, do you know the "price vs income" and "price vs rent" values in lets say Tokyo.
Be interesting to know if they are reasonable or if they are still wayyyy out of whack after all these years..
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Response by nyc10022
almost 17 years ago
Posts: 9868
Member since: Aug 2008
"stevejhx, this is getting so tiring. You post whatever bad news you find and Steve posts whatever good news he finds. Just by the title it's always obvious who it is."
Difference is, SteveH's usually have something to do with real estate... and SteveF usually makes up things not actually said in the article.
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Response by Topper
almost 17 years ago
Posts: 1335
Member since: May 2008
My understanding is that price-to-rent (monthly rent) prices in "Japan" have been declining for years after peaking at much higher levels.
You might find the following link of interest showing a time series of price-to-rent(monthly) ratios around the world. (Keep in mind that price-to-rent ratios are often expressed in terms of "annual" rent in the U.S.)
Another link that gives more perspective on central "Tokyo" rent-to-price ratios (here expressed as yields). Looks to me that "yields" are moderately higher than in "New York." That should probably be put into the context of Japanese government bonds that "yield" only 1.25%.
Bottom line: New York price-to-rent ratios look high relative to Tokyo. (Stated otherwise, New York "yields" look low relative to central Tokyo comparatives.) But it didn't used to be so.
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Response by stevejhx
almost 17 years ago
Posts: 12656
Member since: Feb 2008
bugel, Topper posted the globalpropertyguide link, which is the one I am familiar with. I think there might also be a Case-Shiller type chart somewhere - mmafia posted it, I think.
"price vs income" and "price vs rent"
You're right on both counts. "Price vs. income" when Manhattan incomes are more than falling, they're falling off a cliff. One reason why property prices have to fall - off a cliff.
"price vs. rent" - well, I'm the one who started harping on that a year ago. The day you can buy a property and rent it to an unrelated third party and cover your costs, is the day that property will be properly priced. Until then, it's not - and right now some properties have to fall 2/3 in asking price to reach that point.
something must be wrong. it's a well known fact that japan is just a set of four islands, and we know they are not making any more land .. so real estate prices only go up.
steve, you liar, you ..
You're right, e_c: land is a valuable commodity. Maybe they built fake islands, like Abu Dhabi.
Oh. That didn't work out too well either, did it?
This is the shape of things to come right here on sunny Manhattan Island! 1984 all over again...damn they broke my car window and stole my radio!
stevejhx, this is getting so tiring. You post whatever bad news you find and Steve posts whatever good news he finds. Just by the title it's always obvious who it is.
stevejhx,
Out of curiosity, do you know the "price vs income" and "price vs rent" values in lets say Tokyo.
Be interesting to know if they are reasonable or if they are still wayyyy out of whack after all these years..
"stevejhx, this is getting so tiring. You post whatever bad news you find and Steve posts whatever good news he finds. Just by the title it's always obvious who it is."
Difference is, SteveH's usually have something to do with real estate... and SteveF usually makes up things not actually said in the article.
My understanding is that price-to-rent (monthly rent) prices in "Japan" have been declining for years after peaking at much higher levels.
You might find the following link of interest showing a time series of price-to-rent(monthly) ratios around the world. (Keep in mind that price-to-rent ratios are often expressed in terms of "annual" rent in the U.S.)
http://www.kirainet.com/english/buy-rent-ratio-over-time/
Buying high does have its dangers.
Another link that gives more perspective on central "Tokyo" rent-to-price ratios (here expressed as yields). Looks to me that "yields" are moderately higher than in "New York." That should probably be put into the context of Japanese government bonds that "yield" only 1.25%.
http://www.globalpropertyguide.com/Asia/Japan/Rental-Yields
Bottom line: New York price-to-rent ratios look high relative to Tokyo. (Stated otherwise, New York "yields" look low relative to central Tokyo comparatives.) But it didn't used to be so.
bugel, Topper posted the globalpropertyguide link, which is the one I am familiar with. I think there might also be a Case-Shiller type chart somewhere - mmafia posted it, I think.
"price vs income" and "price vs rent"
You're right on both counts. "Price vs. income" when Manhattan incomes are more than falling, they're falling off a cliff. One reason why property prices have to fall - off a cliff.
"price vs. rent" - well, I'm the one who started harping on that a year ago. The day you can buy a property and rent it to an unrelated third party and cover your costs, is the day that property will be properly priced. Until then, it's not - and right now some properties have to fall 2/3 in asking price to reach that point.