What happens to real estate during a deflationary period

[Deltaberry]

That's right, although sustained deflation is unlikely if population grows. Eg US or UK post GFC.

 

[sumterrence]

I personally believe Japan is not the best example to comparer with AUS, as they are:

1. Not an exporting country like AUS
2. Heavily rely on importing necessary goods such as meat and vegies etc
3. They hold back on their technologies to themselves
4. Focus too much on developing high tech military weapons
5. Land is too small and too polluted for farming

 

[Deltaberry]

You're right on some points, but Japan is actually very big in exporting (think of all the Japanese brands you buy) and make top quality agriculture produce.