Sorry about using you as respondee again, Stitch.
satellite.nikkei.co.jp
Daily News
Tuesday, 22 September 1998
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Lower Land Prices To Drag Japan Economy Down Further
TOKYO (Nikkei)-Placing a heavy obstacle in the way of economic recovery, Japanese land prices are declining at an accelerated pace as a weak employment and income outlook chills demand.
In the 12-month period ended July 1, Japanese land prices dropped for the seventh straight year, the National Land Agency said Monday. In many areas, the rate of decline accelerated from the year-earlier level.
Japan's prolonged economic downturn, coupled with the collapses of financial institutions, has made consumers more cautious about taking out long-term housing loans. According to Japan Research Institute, 66.1% of consumers are concerned that unemployment could affect their household. Such sentiment is depressing housing demand, since consumers are worried over whether they will be able to keep up with loan payments.
The protracted downturn in land prices is expected to further erode the health of financial institutions that hold a huge amount of real estate as collateral on loans that have since soured. According to an official at one major real estate company, properties linked to nonperforming assets usually end up selling at half the original asking price.
(The Nihon Keizai Shimbun Tuesday morning edition)
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