Four steps to the collapse of the Japanese housing bubble

1. The first wave of price cuts was when real estate developers could no longer hold on and began to go bankrupt. In order to repatriate funds and save their lives, real estate developers began to reduce prices for new houses. Second-hand houses were sold at a high price by the original owners and were unwilling to lose money, resulting in a situation where second-hand houses were priced but not sold.

2. The second wave of price cuts was when the economic situation was bad and many people were in trouble. A large number of houses became foreclosed houses. In order to recover funds and avoid risks, banks reduced prices and concentrated listings, exacerbating the decline in housing prices.

3. The third wave of real second-hand housing price cuts was when investors saw that the market had not recovered and hoped to run away. They fled in a panic and left some dregs.

4. The fourth wave Japan began to levy fixed asset tax (property tax) in 1992. If the excess houses could not be rented out, they had to pay property fees and property taxes, which completely became negative assets, resulting in price cuts regardless of cost and price, forming the fourth wave of price cuts, leading to a complete collapse of Japanese housing prices.

Japan's missing thirty years came from then on.