Japan’s real estate sector is suffering a painful credit crunch.
In the past few months, an increasing number of real estate companies have gone under. In July, 43 developers filed for bankruptcy, a yearon-year increase of 79%, according to Teikoku Data Bank, a private research group.
The bankruptcies were largely triggered by a failure to access funds, says Teikoku, which adds that the situation is likely to worsen.
A number of relatively new property developers have seen their share prices hammered amid rising investor concerns about their ability to access credit.