NEWS: Japan's real estate still under bubble shadow
www.chinaview.cn 2005-03-28 21:09:29
TOKYO, March 28 (Xinhuanet) -- Whereas land prices in large citiesacross Japan are picking up, the overall market is still on the decline, a lingering repercussion of the 1990s property foam, recent government statistics showed.
The statistics released last week by the Land, Infrastructure and Transport Ministry showed that the nation's average land prices dropped 5.0 percent in the year to Jan. 1, 2005 for the 14th consecutive year.
The residential land prices dropped 4.5 percent in the year, while that of land for commercial use fell 5.6 percent.
Compared with 1991 when the bubble economy started breaking, the residential land prices have dropped by 46 percent to the pre-bubble year of 1985, and the commercial land saw its prices shrinking by 70 percent to the lowest since 1974.
...In 1991 alone, the 12 leading banks poured 50 trillion yen (470billion US dollars) in loans into the property sector, a sum accounting for one-fourth of the total loans they gave in that year.
...The firms in the property and construction sector accounted forthe bulk of the bankrupt companies.
In 2000, some 6,000 such companies went broken, or 33.6 percentof the bankrupt businesses.
A total of 28 listed went bankrupt in 2002 with property firms taking up more than one-third, both setting a record after the World War II.
MORE
TOKYO, March 28 (Xinhuanet) -- Whereas land prices in large citiesacross Japan are picking up, the overall market is still on the decline, a lingering repercussion of the 1990s property foam, recent government statistics showed.
The statistics released last week by the Land, Infrastructure and Transport Ministry showed that the nation's average land prices dropped 5.0 percent in the year to Jan. 1, 2005 for the 14th consecutive year.
The residential land prices dropped 4.5 percent in the year, while that of land for commercial use fell 5.6 percent.
Compared with 1991 when the bubble economy started breaking, the residential land prices have dropped by 46 percent to the pre-bubble year of 1985, and the commercial land saw its prices shrinking by 70 percent to the lowest since 1974.
...In 1991 alone, the 12 leading banks poured 50 trillion yen (470billion US dollars) in loans into the property sector, a sum accounting for one-fourth of the total loans they gave in that year.
...The firms in the property and construction sector accounted forthe bulk of the bankrupt companies.
In 2000, some 6,000 such companies went broken, or 33.6 percentof the bankrupt businesses.
A total of 28 listed went bankrupt in 2002 with property firms taking up more than one-third, both setting a record after the World War II.
MORE
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