Tokyo residential property prices are likely to hold up after the Bank of Japan’s interest-rate increases, though some areas may see declines, industry experts say.
This year’s rate hikes — bringing the central bank’s benchmark to 0.25% — aren’t so large that wealthy people are reluctant to buy, according to Takeshi Ide, senior chief researcher at Tokyo Kantei, a real estate data and consulting firm. Capital gains from short-term resales are likely, he said.
Shogo Fujita, president of broker FJ Realty, also recommends buying to his customers. He continues to receive many inquiries about new purchases, and no clients have stopped considering buying because of rising interest rates.
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