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Tokyo Condo Sales Plunge to 1992-Low in Sign Boom Deflating

  • Sales weak even as fixed-rate lending rates near record lows
  • ‘Stagnation in wages’ behind slump in market, Mizuho says
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Why Are Condo Sales Falling in Japan?

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Sales of new condominiums in Tokyo have fallen to the lowest since the nation’s 1990s property bubble collapse, a sign the real estate boom fueled by Bank of Japan easing is starting to unwind.

New apartment sales in and around the country’s capital fell 32 percent to 13,303 units in the first eight months of the year, the least since 1992, data from the Real Estate Economic Institute Co. show. Potential buyers, faced with almost stagnant wages, are turning down 35-year fixed-interest mortgages as low as 1.06 percent, near the record low of 0.9 percent in August, according to data from the state-run Japan Housing Finance Agency.