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July 5, 2019, 4:21 p.m. EDT

Singapore : Is it bubble time again for Japan's real estate companies

Jul 05, 2019 (Euclid Infotech Ltd via COMTEX) -- Japan's real estate firms are entering dangerous territory. That's the assessment of S&P Global Ratings, which said in a report on Friday that the sector's debt levels now eclipse that of the nation's bubble era.

Remember that It was back in the 1980s, when newspaper headlines proclaimed that the grounds of the Tokyo Imperial Palace were valued at more than all of the real estate in California.

"Japan's real estate market is peaking out and ready to head down," S&P said. "Although the conditions in the office leasing market are solid, there are signs of a slowdown in corporate earnings, particularly among manufacturers. In addition, we expect major upticks in central Tokyo office building supply in 2020 and 2023."

Companies most at risk are Mitsubishi Estate Co, Mitsui Fudosan Co, Sumitomo Realty & Development Co and Nomura Real Estate Holdings Inc.

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