The Liberal Democratic Party-New Komeito ruling coalition aims to allocate ¥800 billion this year to support a domestic property market ravaged by the global credit crisis.
State-run Development Bank of Japan will put ¥100 billion into a fund to finance purchases by real estate investment trusts and support property acquisitions by developers with a further ¥50 billion, Isamu Ueda, a New Komeito lawmaker and member of the coalition's project team, said in a recent interview.
It will also provide ¥350 billion in backing for residential mortgages and ¥300 billion for city redevelopment projects, he added.
Overseas investors withdrew from the market for Japanese real estate investment trusts, or J-REITs, last year as the U.S. financial crisis worsened. The market value of 40 listed J-REITs fell to ¥2.52 trillion from ¥4.36 trillion on June 30, 2008, data compiled by Bloomberg show.