A new approach to resolving Japan's real estate crisis : will securitization follow?

Abstract

Within the current condition of the Japanese financial markets, there exists a great problem that must be dealt with, or else run the risk of further escalation of that problem. That problem is with the Japanese real estate market. In this thesis, the impact of the implementation of securitization into the Japanese real estate markets will be examined by first taking a look at the proposed regulatory changes, and then at the impact they may have upon the market itself. Also, I try to analyze the nature of Japanese real estate investment trusts (J-REITs). The results show that the implementation of securitization into the Japanese real estate market will indeed succeed, but not immediately. Some economic and political factors that will help with securitization's success include firmer real estate prices, economic expansion, low interest rates, strengthened reserves, experience, and political resolve. However, it will be the government's actions that will ultimately decide the fate of the Japanese real estate market concerning the implementation of securitization.