Data Analysis for Monitoring Japan's Real Estate Market

Large movements in the real estate market not only magnify fluctuations in the real economy but also destabilize the financial system. For this reason, it is quite important for central banks to monitor real estate market trends both in terms of monetary policy and prudential policy. Based on recently enhanced statistics, this article presents a data analysis for monitoring the real estate market from three perspectives: 1) real estate transactions; 2) real estate prices; and 3) real estate finance. In so doing, we explain that dispersions in real estate prices are valuable indicators in detecting overheating of the real estate market.