Rise in property lending stirs fears of new bubble in Japan

Tokyo

A SURGE in property lending in Japan by banks and other financial institutions is fuelling fears among some of a "real estate bubble" developing, similar to the one which sent property prices soaring and then subsequently crashing - at the time of the Japanese "bubble economy" in late-1980s.

Property-related loans extended during the first half of the current financial year (April to September) rose by nearly 15 per cent to 7.1 trillion yen (S$92 billion) compared to the same period of the preceding financial year, according to latest data from the Bank of Japan (BOJ).