Japanese real estate stocks rally on US mortgage aid plan, rising office rents
Japanese real estate stocks rose in morning trading Friday on hopes that the US government’s rescue plan for struggling homeowners will ultimately improve conditions for real estate investment in Japan.
A rise in office rents in central Tokyo last month also heartened investors by showing brisk corporate demand for office space.
President Bush announced overnight a plan that allows some homeowners facing foreclosure to not only freeze their interest rates for up to five years but also refinance their mortgages.
‘Investors bought back real estate shares, expecting the US subprime bailout plan to restore the health of financial institutions and thereby help improve conditions for real estate investment in Japan,’ said Kazuhiro Takahashi, a manager of equities marketing at Daiwa Securities SMBC.