Central Tokyo condominium prices are said to have declined for 3 consecutive months, with reports suggesting that if the policy rate exceeds 2%, it will be “hell to buy and hell to rent.”
The article discusses reports that condominium prices in central Tokyo declined for 3 consecutive months, and points to the impact on working-age people as well as developments in the yen and fiscal policy as factors related to the phenomenon. The yen's depreciation and fiscal concerns have strengthened expectations of additional rate hikes, while market participants believe that the impact of higher interest rates is spreading to the central Tokyo real estate market.
The government’s draft Basic Policy on Economic and Fiscal Management and Reform reportedly included wording emphasizing the importance of monetary policy management, accelerating the yen’s depreciation and bond price declines. The government is subsequently reported to have taken a series of measures, including deleting the wording and proceeding with coordinated intervention by Japan and the United States.
The US Treasury Secretary has commented on the matter, and views favoring pressure on the Bank of Japan to raise rates remain widespread. At the same time, some have pointed out that internationally coordinated intervention to address the yen’s depreciation would carry a substantial cost, and the outlook for market developments is said to remain uncertain.
The article examines the complex situation surrounding the outlook for the real estate market, with multiple factors including rate hikes, fiscal policy and the independence of the Bank of Japan. Readers are said to need to watch interest-rate trends and policy turning points closely.