A survey of real estate investors using loans from financial institutions found that approximately one in four had become more inclined to sell properties they own as interest rates rose, while some respondents remained positive about purchasing.
The survey covered 141 men and women in their 20s to 60s who use loans from financial institutions and was conducted from 1 to 2 September. It aimed to assess actual buying and selling intentions during a period of rising interest rates.
More than one in four respondents said they had become more inclined to sell properties they own following the recent rise in interest rates. The most frequently cited reason was concern that higher loan repayment burdens would worsen profitability. Many respondents also believed that a future decline in demand would make it more difficult to sell.
Meanwhile, approximately 40% said they were inclined to purchase investment real estate even at current interest rate levels, indicating a certain level of interest in purchasing depending on the conditions and of intentions to purchase in the future. Just under 40% said they would seriously consider selling before lending rates reached 4.0%.