Saturday, March 24, 2007

Tokyo Land Grab! Japanese Land Prices Rise For the First Time in 16 Years

Tokyo, Osaka, Nagoya are hot! Will Dolf DaRoos, Carlton Sheets and Robert Kyosaki be selling their real estate courses there?

Just how hot are things... These lines from a Nikkei English News story....

"An end to asset deflation will have a major impact on the overall Japanese economy. Banks and companies no longer saddled with the burden of falling land prices may become willing to take on more risk in their loans and businesses. Paper profits on land holdings may also help improve consumer sentiment.
But some warn that land prices are overheating. For instance, commercial land prices adjacent to Hakata station in Fukuoka Prefecture have jumped 40%, a rise that some believe surpasses the land's actual profitability.
Japan's land assets are said to total around 1,200 trillion yen, which is half of its peak. Nationwide commercial land prices are at about the same level as they were in the latter half of the 1970s. Even though Japan has marked an end to asset deflation, the recovery is nascent. Therefore, the government will need to tread cautiously with its economic policy management."

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