Real Estate Prices Always Go Up, Don't They?
Here are two of the most common statements made about real estate:
1) They're not making any more land.
2) Because they're not making more land, real estate prices always go up.
Few places in the world are as space-constricted as Japan. Yet, real estate prices have dropped for 15 straight years.
Doesn't that contradict the widely-accepted beliefs listed above?
posted by The Phantom Republican @ 6:25 PM
1 comments
1 Comments:
PR,
Typical of those articles, there's never any mention of any cultural factors that may be involved.
I know, I know, beware of broad generalizations, but (as I may have commented before) in general, the Japanese aren't as interested in owning their homes as Americans are... that's why it's called the "American dream", and not the "Japanese dream" ha ha.
But seriously, that's the impression I've gotten from the 10 or 15 Japanese people I've met over the years. And also from reading a variety of articles on this subject. Not to say that their decreased demand is the only thing driving the prices down, but I gotta believe it's at least one of the factors...
Anyway, I don't spend nearly as much time thinking about the impending real estate doomsday as you do, so what do I know... As for all your readers, feel free to flame me to a crisp. (:
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