28.08.2008 - More Japanese developers to fail, says Daiwa house chairman
From Bloomberg: The list of Japanese real estate companies filing for bankruptcy will grow this year as banks cut lending, said Takeo Higuchi, chairman of Daiwa House Industry Co., Japan's second-biggest home builder by market value.Developers and construction companies dominated the ranks of failures in July, accounting for a third of 1,131 bankruptcies in the month, the largest number since April 2005.``It's hard to see any light at the end of the tunnel,'' said Higuchi, who last September predicted Japan's property market was set to slow. "Banks will take an even tougher stance on providing loans to property firms after the bankruptcies and we will probably see more failures this year.'' The Topix Real Estate Index tripled in the four years through 2006 before stalling last year when revisions to building codes delayed approvals and banks tightened lending to developers. Some foreign funds that invested in the market since 1997 also pulled back after the collapse of the subprime market in the U.S., said Junko Miyakawa, a credit analyst at Shinsei Securities Co...... Full Article: Source
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