Japan real estate is surging after delay of Olympics
As real estate prices in Japan enjoyed a six-year recovery, the specter of a post-Olympics real estate crash had loomed so large as to risk becoming a self-fulfilling prophecy. But with the Olympics now postponed for a year in an unprecedented move due to the coronavirus, the real estate party can continue. The Topix Real Estate Index on Wednesday enjoyed its best day since Bank of Japan Governor Haruhiko Kuroda unleashed his second QE “bazooka” in October 2014, surging 11% and the best performer of the 33 Topix sub-groups. Real estate developers also made up the top three performers on the Nikkei 225 index, which surged the most in 12 years. Tokyu Fudosan Holdings, the biggest gainer on the Nikkei, jumped the most on record. Tokyo Tatemono Co. gained the most since 2013. And Sumitomo Realty and Development Co., which will redevelop the site of the Olympic Village into more than 5,000 apartments, closed limit up, the biggest gain since 1999. The games have helped create buzz in the Harumi area where the village will be located, with concern property values could plummet if the games were cancelled.
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