Based on our projections, the size of the annual decline will keep getting bigger before peaking somewhere between 20, said Futoshi Ishii of the National Institute of Population and Social Security Research.The shrinking population is already producing a surplus of housing units.In an effort to reduce the total number of abandoned homes, some abandoned houses and apartments are being put back on the market by the Ministry of Land, Infrastructure, Transport and Tourism, as part of its new 10-year national housing plan.
Authorized housing starts increased 3.2% to 223,290 units in Q1 2017 from the same period last year, according to the MLIT.
The average household size is projected to decline to 2.37 by 2025, from 2.67 in 2000, and 5.0 in 1950, according to the Ministry of Internal Affairs and Communication.
More Japanese are living alone and fewer are living in multiple-generation households, increasing the demand for quality housing.
As a result, the prime lending rates in principal banks in Japan have hardly moved since 2000, remaining below 3%.
Due to BOJs move to maintain the key rate, Resona Bank and Sumitomo Mitsui Trust Bank, two of the countrys five major banks, held their mortgage rates unchanged in April 2017, at 0.95% and 0.55%, respectively.
In the countrys metro areas: In April 2017, the BOJ kept its key interest rate steady at -0.1%. This means that lenders will be charged to keep their money with the central bank.