Real Estate Loans in Japan at Record High

A Bank of Japan survey shows lending to the real estate industry was the largest ever during the first half of this fiscal year.

    The survey tallies the amount of new loans granted by 139 banks across the country. It said that lending to companies and individuals from April to September totaled 219.8 billion dollars. That's up 16% from the same period last year, according to Japan's (NHK WORLD) radio. 

    The BOJ said that banks lent a record high of about 54.1 billion dollars for real estate alone. Property prices have been rising in metropolitan areas since the central bank introduced a negative interest rate policy in February. 

    As a result, real estate developers, agents and fund managers are borrowing more to invest in condominiums and office buildings. BOJ officials have noted a few instances where prices have surged, but they said that property market is not showing signs of overheating yet.