Japanese warming to home auctions amid pain of negative rates
Public auctions of houses were rare in Japan until now because of fear that a Yakuza organisation was squatting in the property or that a crime had happened there
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Tokyo
A TABOO in Japan against bidding for homes in auctions for fear they may be tainted by crime has been set aside as negative interest rates spur property demand.
Six homes in Tokyo and surrounding areas were sold last month at an auction, the first such event organised by the Real Estate Auction Circulation Association, with all of the homes selling for less than US$47,000. Loans to individuals for buy-for-rent residential property reached a record in March, BOJ data show, as bank deposit rates fell to 0.001 per cent and sovereign bond yields slumped below zero.
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