I wonder what that means.
Didn't you say that when the Tokyo Olympics were over, there would be a recession and real estate prices would drop too?
That is what the current situation is. The stock price hit an all-time high, and hundreds of millions of condominiums continue to be built as if the term 100 million yen had become obsolete. And it's strange because it's selling well. Export companies have made the highest profits in history, and people are interested in investing even though they don't have any money left over. Certainly, those who started investing within the last 10 years may not have failed. That's because stock prices and real estate have been rising all the time. Luxury hotels that cost hundreds of thousands of yen per night are being built one after another. The stagnant mood during the COVID-19 period has disappeared due to the inbound economy. Investment property with favorable conditions evaporates instantaneously from the market, and even so, real estate investors are pursuing investment property even when expected returns are lowering. The Profit Return Act cannot be completed in time. This is strongly influenced by the movement of overseas real estate investors. Japanese real estate is originally cheap compared to overseas real estate such as Shanghai, Beijing, Hong Kong, London, and New York. That's where the yen depreciates. From their point of view, it may seem like real estate bargain sales are being held in Japan. And they are quick to make decisions. Real estate is being bought at a speed close to a quick decision, as if trying to quickly transfer one's assets to Japan. Japanese investors aren't comfortable with that speed and financial power. Wages also increased for the first time in 30 years, reflecting labor shortages.
Looking at the surface of economic conditions in this way, Japan's economy is good, with Tokyo at the center.
When we look back at our feet, it is said that Japan's GDP, which was the second largest economy in the world, was overtaken by China and surpassed by Germany, and next year it will be surpassed by India and fall to 5th place in the world. Why is this happening?
Cost-push inflation progressed against the backdrop of rising prices overseas, drastic depreciation of the yen, and labor shortages, and wage increases did not keep up, and the common people became poorer day by day. Elderly people who have nothing but savings are frightened by the fact that the value of their money will drop.
It used to be called a dream home, etc., and houses that were representative of stable assets are vacant, and they don't sell easily. They are called negative personal property, etc., and they are luggage at the time of inheritance. Is this also due to the declining birthrate and aging population?
The declining birthrate is progressing, and the population of Japan is only declining. Population is the engine of the economy. The smaller the engine, the less horsepower it produces. I'm surprised at the reality of poor “children's cafeterias.” Contrary to the ostensible boom, this is a story about a downturn.
Reprinted from Real Estate Management Journal Co., Ltd. “Weekly Real Estate Management” (with permission)
