The number of property transactions in the nation has tumbled, rents have been muted and inflation expectations have waned ¡ª all of which has prompted a growing number of analysts and economists to turn bearish on property prices, which have been recovering since Prime Minister Shinzo Abe came to power in 2012.
Deutsche Bank AG¡¯s Yoji Otani said prices benefited from Abe¡¯s monetary easing and are poised to fall as government policies are faltering, joining analysts and economists at Mizuho Financial Group Inc. and Fujitsu Research Institute in forecasting declines. In Japan¡¯s property market, bearish investors now exceed bulls for the first time since 2008, according to a survey by Tokyo-based NLI Research Institute published this week.
¡°This will be the year when the quiet property bubble collapses,¡± Deutsche Bank¡¯s Otani said in an interview in Tokyo. ¡°Both 2016 and 2017 are likely to be severe years for the property market.¡±
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