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In order to prevent the real estate bubble from adversely affecting the real economy, the Japanese government has taken both administrative measures and monetary tightening to try to control the real estate bubble.

Unexpectedly, the bubble under control burst instantly. This real estate mania that lasted for 36 years collapsed in only 3 months.

It was also in 1991, Tokyo, Japan ’s largest city, that house prices plummeted by 65% ​​in three months, which kicked off the collapse of real estate in Japan. In the first half of the year, the rich man immersed in the joy of real estate appreciation, in the second half of the year, he became a bearer who cut off the supply and loan.

From the crazy buying of a house to the crazy one, you will buy a house. This huge change in concept will bring the real estate market into the coldest darkness, and it is even more tragic that a large number of projects accumulated by the housing companies during the bubble period are continuously listed. The serious imbalance between supply and demand has continued to increase, the value of assets in housing companies has continued to avalanche, and the pressure to repay debt has soared.

Furthermore, the new land price tax imposed by Japan in 1992 has once again brought a devastating blow to the balance sheet of housing companies. In two years, 2,323 housing companies in Japan went bankrupt, with an average of three closed down every day.

Industrial collapse, all of a sudden.

At the time, there were only two types of housing companies in Japan. One was bankrupt and the other was bankrupt.

The nights faced by Japanese housing companies are beyond imagination, and the decline in house prices as shown in the figure below has continued for two decades. The clearing of the real estate bubble has brought about a decline in economic growth, and the advent of an aging society. Under the multiple pressures, Japanese housing companies have also struggled for 20 years.

Observing the above chart, we can see that the land price index in Japan was a clear watershed around 1991, and since then it has fallen flat. Even according to the latest data, land prices in Japan are still at the level of the 1970s.

Twenty years of industry depression, the entire industry is constantly shuffled, and most small and medium-sized real estate companies have withdrawn from the real estate scene in Japan.

From the perspective of real estate sales data, the current top 20 Japanese housing companies have concentrated 56.1% of the market share. However, for about fifty years from the 1970s to the present, the TOP20 list of Japanese real estate companies has long been out of character.

Taking 1973 and 2014 as examples, only Japan ’s TOP20 housing companies list, only Mitsui, Mitsubishi, and Sumitomo have successfully passed through 50 years and still occupy the top 20. The rest of the old TOP20 guys fell down and changed their careers.

The length and depth of the adjustment cycle of the real estate industry are daunting. How to counter-cyclically survive and develop in the ruins of the industry?

Experiencing prosperity and recession, from the 1991 crash to entering a long period of adjustment and recovery, these Japanese housing companies that have passed through the 20-year real estate cycle have the most say.