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Japanese property values are reasonable because their zoning is decided at the national level and local residents have next to 0 power to stop people from build
by colinmhayes 5y ago
Japanese property values are reasonable because their zoning is decided at the national level and local residents have next to 0 power to stop people from building things in properly zoned areas.
- adam_arthur 5y agoThat's a big reason too, but also because their population is declining. https://www.google.com/search?q=japanese+population+growth+rate https://www.google.com/search?q=japanese+population+growth+r... What do you think happens to housing units per capita as population levels decline? The US and China are on the same path, just some years behind. We can ignore demographics for the next handful of years, but it will become very impactful on a 10+ year time horizon. China will deal with the inverted population pyramid sooner than us, so it will be interesting to see if that affects their GDP surpassing the US. Anyway, the property sector will be super interesting in 50 years, when everything is overbuilt relative to population size. I imagine eventually rents will naturally become deflationary
- jbay808 5y agoJapan also had a colossal real estate bubble pop in the early 90s, which created lasting lessons for Japanese real estate speculators.