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BOJ begins to sweat as Japan's real estate heats up

Key ratio edges higher than long-term trend

Lending is growing for condos like these, seen on Tokyo's bayside area. (Photo by Kazuya Hiruta)

TOKYO -- Property lending by Japanese banks hit a record high last year, and that has sparked anxiety at the Bank of Japan. 

Outstanding real estate financing from domestic banks was 78.94 trillion yen ($712 billion) at the end of 2018, the highest on record and the fourth consecutive annual increase, according to data from the BOJ. That may have pushed one of the central bank's key indicators of financial overheating into warning territory. 

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