The property market in Japan is set to be boosted by so-called echo boomers, who are the children of baby boomers, many of whom are taking out their very first mortgages. It's the ideal time to do so as mortgage rates are nearly at a three-year low, and it is estimated around 15% of the population, or 19.1 million people are aged between 35 to 39, or 40 to 44. When these two groups are combined they give a population size that is double the post-war baby boom generation.
The boost to the economy can't come too soon, as the housing market accounts for around 15% of Japan's GDP, and the country is still struggling to recover from last year's earthquake. Unemployment is rising, as some companies are posting worse than expected results. Japanese buyers have some of the lowest financing costs in the world, as the Bank of Japan has held rates at near zero for the past 17 years.
Japan's housing starts rose 2.6% last year to reach 834,117 units and this has boosted mortgage sales for the first time since 2007. Mortgage sales increased 44% to reach ¥2.61 trillion last year, after the government introduced fixed rate mortgages.
New housing starts reached their third highest level in Japanese history in 1987 when baby boomers first became old enough to buy their homes. Homebuyers aged between 35 and their mid-40s represent a 44% share of the market, and the Japanese really are a nation of homeowners, as around 86% own their own home.
No comments:
Post a Comment