Each month I see the 'Tokyo Condominium Sales' data on the wires and each month I let it go through to the 'keeper
("Go through to the 'keeper" means I ignore it ... and it's a term from the game of cricket)
For December, up 13.2% y/y
- Prior -22.7%
Ok, so what's the story?
Well, this in the Nikkei today:
- With rents falling in Japan on a surge in construction of apartments, the Bank of Japan may have run into yet another obstacle in its quest to achieve a 2% inflation rate.
It goes on, in brief (bolding mine):
- Negative BOJ interest rates have kept rates on housing loans low
- Attracting investors
- If new properties flood Japan's market without corresponding demand, rents would crash and efforts to get Japan out of deflation would be derailed
- The bank may have to start looking at long-term trends in the housing market as well, focusing on rents and the supply and demand of rentals
More here at the piece: New housing may stand in way of Japan's inflation target
Central bank faces new headache, this time in rental market
