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Economy

Japan's real estate lending slows amid housing glut

Less financing for rich people building apartments for tax purposes

Lending to individuals for constructing apartments fell sharply in 2017.

TOKYO -- Japanese real estate financing retreated 5.2% in 2017, the first drop in six years, with banks slowing lending for apartment construction amid higher vacancy rates.

Financial institutions lent 11.71 trillion yen ($107 billion), show Bank of Japan figures out Thursday. This also marked the first decline since the BOJ embarked on its large-scale monetary easing program in 2013.

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