17 Years Later Prices In Japan Rise 1%
An example of how devastating real estate bubbles can be is found in this Reuters piece. It is reported that certain areas have seen price increases after a long time down. "Residential prices in central Tokyo rose 0.9 per cent in 2004, the first rise in 17 years." I am sure they will get out the party hats, if anyone can remember where they put them two decades ago.
The more interesting aspect of the story is the review of how long and hard the fall really was. "When the bubble burst property prices plummeted more than 80 per cent, undermining company balance sheets, wiping out many families' wealth and helping plunge the economy into 13 years of stagnation."
In the end, the writer had to admit that the hope for a rebound isn't widespread. "Despite strong growth in the cities, the survey said prices nationwide dropped 4.6 per cent, the 14th consecutive year of decline...on average, residential property prices in Tokyo were 41 per cent of their peak in 1991, while commercial property prices were 20 per cent of their peak value." Thanks to the reader who submitted the link!