The Japanese government is set to provide a much-needed boost to the domestic property market with an 800 billion yen package in the works. The Development Bank of Japan plans to place 100 billion yen into a fund for property purchases, with another 50 billion yen for developers to buy properties.
The program also includes 350 billion yen to back residential mortgages and 300 billion yen for city development projects. The actions come as many oversees investors have withdrawn their money from the market in recent months as prices and values have fallen.
The Development Bank’s support fund will be set up within a few months, as will additional private money for new investments. The package is included in a supplementary budget, and money will begin to get into the market once the legislation is approved. Approval is expected in late Spring, probably around June.
