The risk of zero equity grows larger by the day. The below...

The risk of zero equity grows larger by the day. The below article is in today's Australian property section:

http://www.theaustralian.com.au/business/property/japanese-commercial-real-estate-assets-dip/story-e6frg9gx-1225995108061

JAPANESE commercial real estate markets have fallen almost 20 per cent over the past 2 1/2 years, according to property researcher IPD.

Japan was the world's second-largest commercial property market by value, IPD said, but the former economic powerhouse was one of a small number of major real estate markets to continue to record capital depreciation, reflecting weak economic growth.

"There is no immediate end in sight to the 2 1/2-year unbroken period of capital writedowns," IPD Japan managing director Toshiro Nishioka said.

"Each quarter brings, at best, modest improvements."

The market needed more transactions to boost confidence, Mr Nishioka said.

IPD's market indicator shows a 6.3 per cent fall in property values in the September quarter, with the office sector the worst performer.

However, the 6.3 per cent fall was the lowest quarterly drop since December 2008, and a significant improvement on the 12.2 per cent fall recorded in September 2009.

IPD said the retail sector, driven by improved consumer confidence, continued to buck the trend of the broader market, recording only a 2.8 per cent fall, the lowest since July 2008.

However, at the end of the September quarter, offices were running at an annual capital depreciation of -8.3 per cent.

Japanese residential property fell 4.5 per cent for the quarter.

IPD said the Japanese data was in contrast to that of Britain, the US and Australia, all of which had emerged from the global financial crisis into capital growth.

In Britain, the rebound was 17.4 per cent, while the US had risen 5.5 per cent over the previous six months.

It said Australia had recovered by a modest 1.1 per cent.