Japan's mortgage rates remain a fraction of US and European levels even after the BOJ's policy shift. A buyer financing in yen still operates in one of the cheapest borrowing environments in the developed world.
@housingjapan.bsky.social
@housingjapan.bsky.socialJapan's mortgage rates remain a fraction of US and European levels even after the BOJ's policy shift. A buyer financing in yen still operates in one of the cheapest borrowing environments in the developed world.
@housingjapan.bsky.socialThe BOJ has moved from negative rates to 1.25% — dramatic, but still low by global standards. For Tokyo buyers, the question is no longer 'if' rates rise but 'how high' before the cycle turns.
@housingjapan.bsky.socialTokyo property is expensive by Japanese standards — but measured against London, New York, or Singapore, it remains competitive. The gap between Japan's GDP per capita and its property prices tells an interesting story.
@housingjapan.bsky.socialTokyo property is expensive by Japanese standards — but measured against London, New York, or Singapore, it remains competitive. The gap between Japan's GDP per capita and its property prices tells an interesting story.
@housingjapan.bsky.socialEach 0.25 percentage point BOJ rate hike adds roughly ¥60,000 to the annual interest cost on a ¥100 million loan. For a foreign buyer, that's roughly $400/year at current exchange rates — a manageable increase against the asset's appreciation potential.
@housingjapan.bsky.socialThe Bank of Japan's rate hike to 1.25% — the highest in 31 years — is reshaping the calculus for Tokyo property buyers. Mortgage costs are rising, but at 1.25%, Japanese borrowing remains a fraction of US or European rates.