Japan: Remote Work Boosts Housing Loan Businesses In Suburbs

Remote Work Housing Loan Businesses

Remote work boosts housing loan businesses in Japan. The fifth-largest banking group in Japan records an increased demand for credit from remote workers seeking larger properties in the suburbs. This year Resona Holdings’ shares peak 32%, rebounding from a 25% decline in 2020. After a year of remote work, the bank expects a 16% increase in profit to ¥145 billion.

After the COVID-19 outbreak, Japan switched to remote work during the health crisis. Before the pandemic, the most popular flats were near the stations in metropolitan areas. After a year of restriction and lockdowns, most remote workers seek larger properties in the suburbs to live with the family while working. 

The switch to remote work during the pandemic is boosting one of Japan’s biggest mortgage lenders. Resona Holdings Inc. has released about ¥13.3 trillion in home loans, one of the highest in the ¥200 trillion markets.

Based in Tokyo, Resona has a strong network in the areas near the capital, such as Saitama Prefecture or Osaka. Mortgage loans rose 6.5% to $12 billion (¥1.3 trillion) at the end of March. The highest record in the last three years.

The remote work trend is also benefiting banks near Tokyo. For example, home loans of the Bank of Yokohama Ltd. rose 4.8% last fiscal year.

After the Japanese government made remote work mandatory, some companies are maintaining this trend. Hitachi Ltd., one of Japan’s biggest businesses, announced that 85% of the staff in Tokyo would keep working from home.

Following remote work trends, Resona President Masahiro expects Resona’s housing loan businesses to keep growing for the next financial year. As companies expand hybrid models, remote workers are seeking larger proprietors in the suburbs. While it’s hard to predict if it will stay a significant trend, remote work policies transform employees’ habits. 

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