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Japan's `Quiet Property Bubble' Is Coming to an End

  • Property transactions slumped 31 percent in second half
  • More bears than bulls on property for first time since 2008
Houses stand in Inzai, Chiba Prefecture, Japan, on Wednesday, Jan. 27, 2016.
Photographer: Kiyoshi Ota/Bloomberg

In Japan, the number of property transactions has tumbled, rents have been muted and inflation expectations have waned. That’s prompting a growing number of analysts and economists to turn bearish on property prices, which have been recovering since Prime Minister Shinzo Abe came to power in 2012.

Deutsche Bank AG’s Yoji Otani said prices benefited from Abe’s monetary easing and are poised to fall as government policies are faltering, joining analysts and economists at Mizuho Financial Group Inc. and Fujitsu Research Institute in forecasting declines. Investors bearish on Japan’s property market now exceed bulls for the first time since 2008, according to a survey by Tokyo-based NLI Research Institute published this week.