> "Normally" when? In what conditions?
In a healthy economy with a moderate inflation and on markets that are not over-valued and/or with an unreal credit offer.
> Japan's house prices have been falling for more than 20 years now.
Japan's economy suffers a deflation since a long time, so not only housing prices are falling.
>(though it is increasing their minimum operating cost)
Actually it is not. Buying an asset have sense only when you know you are going to use it for at least is depreciation lifespan. If you have to sell it before that (because forced laid-off, moving out from city, etc.) you will most likely lose money since probably the interest rates are higher than the valuation rate. This is why most big company owns their headquater (they know/hope to use it for a long time) but rent everything else (They can find a bigger place easily if they need to hire more people, etc.)
> Japan's house prices have been falling for more than 20 years now.
Japan's economy suffers a deflation since a long time, so not only housing prices are falling.
>(though it is increasing their minimum operating cost)
Actually it is not. Buying an asset have sense only when you know you are going to use it for at least is depreciation lifespan. If you have to sell it before that (because forced laid-off, moving out from city, etc.) you will most likely lose money since probably the interest rates are higher than the valuation rate. This is why most big company owns their headquater (they know/hope to use it for a long time) but rent everything else (They can find a bigger place easily if they need to hire more people, etc.)