Record property loans driving Japan real estate market recovery

Tokyo

RECORD Japanese property lending is driving such a strong recovery in the world's second-largest real estate investment market that policymakers are flagging risks.

Loans to the property industry excluding those to individuals reached 3.82 trillion yen (S$41.3 billion) in the three months ended March 31, central bank data show. The average price of new condominiums sold in central Tokyo has climbed to 62.2 million yen in the first four months of 2015, 26.5 per cent more than the average price a decade ago, according to the Real Estate Economic Institute.