Japan has conducted its first-ever land-to-ship missile test within its own territory, a move the Ministry of Defense described as “extremely important for enhancing military capability in the current difficult security situation.”

The ‘Type-88’ missile was test-fired by the Japan Ground Self-Defense Force (JGSDF) from a military base on the northern island of Hokkaido on Tuesday (local time), hitting an area off the Pacific coast, according to Agence France-Presse (AFP). Traditionally, Japan has conducted such live-fire drills at U.S. military bases, but these are often expensive and involve a limited number of personnel. The decision to conduct drills domestically comes as a weaker Japanese Yen has further increased these costs.

Chief Cabinet Secretary Yoshimasa Hayashi stated in a Wednesday press briefing that conducting live-fire exercises at home allows for the training of a greater number of troops and aids in the defense of islands and other areas. While he maintained the exercise was not directed at any specific country, Japan has previously identified China as its “biggest security threat.”

Experts suggest that Beijing’s push for regional dominance, particularly its assertive stance on Taiwan, has led Japan to significantly alter its defense strategy. Japan is currently working towards a long-term plan to increase its defense budget to 2% of GDP, aligning with NATO standards. Concurrently, it is strengthening its military alliance with the United States to enable a swift response to regional tensions and potential threats.

US President Donald Trump has issued a stern warning to Israel, urging an immediate halt to its airstrikes on Iran and declaring that both nations have broken the ceasefire agreement brokered by the United States and Qatar.

Speaking at a White House briefing on Tuesday, Mr Trump said he was “really unhappy” with Israel’s continued military action, calling on the country to “bring your pilots home, now.”

Tensions have escalated sharply in recent days following Israel’s attack on Iranian nuclear facilities, prompting Iran to launch missile strikes on a US military base in Qatar in retaliation.

Israel’s Defence Minister, Israel Katz, announced “intense strikes” on Tehran in response to what he described as Iranian violations of the truce. Iran, however, denies breaching the agreement and has warned it is prepared to respond “decisively” to further Israeli actions.

The conflict has already resulted in heavy casualties. Iranian officials report that more than 400 people, including 13 children, have been killed since Israel began its offensive on June 13. An additional 3,056 people have been injured, according to Iranian sources. In Israel, at least 24 people have died as a result of Iranian strikes.

The ceasefire, intended to reduce tensions in the region, now appears to be in tatters, with the US struggling to rein in both allies and adversaries.

Rapid rent increases and property prices in Istanbul have reached staggering heights, rendering even ordinary properties unaffordable for most Turks. Over the past two years, the cost of real estate per square meter in the city has skyrocketed by over 480%, according to consulting firm Endeksa. Adjusted for inflation, housing prices in Turkey as a whole rose by 51% last year, surpassing all other major economies, as reported by a study conducted by the Bank for International Settlements.

The primary factors driving this surge are reckless interest-rate cuts and resulting inflation, both stemming from the policies of Turkish President Recep Tayyip Erdogan. These developments have encouraged individuals with access to credit to invest in property as a means of preserving their wealth. Foreign buyers, particularly Russians, have also played a role in driving up prices, especially in Istanbul and along the Mediterranean Riviera.

The destructive earthquakes that struck southern Turkey earlier this year, claiming the lives of over 50,000 people, have had further repercussions. The estimated 3 million individuals displaced by the disasters have relocated to other parts of the country, leading to an abrupt spike in demand. 

Concerns about a potentially devastating earthquake in Istanbul, which lies just north of a significant fault line, have caused the prices of newer and safer buildings in the city to surge. Interestingly, according to a recent study by Bahcesehir University’s Center for Economic and Social Research, the neighborhoods farthest from the fault line have witnessed the highest price increases.

While one might anticipate a burst in this property market bubble, even recent policy changes may not be enough to bring the market back to reality. On June 22nd, Turkey’s central bank implemented a policy U-turn by increasing the benchmark interest rate by 6.5 percentage points. However, analysts suggest that prices will continue to rise, albeit at a slower pace, as long as inflation expectations remain high.

Unfortunately, inflation expectations remain persistent. The recent interest rate hike deemed insufficient to make a substantial impact, failed to alleviate pressure on the Turkish lira, which swiftly plummeted by 3% against the dollar within an hour of the decision. Since President Erdogan’s reelection on May 28th, the currency has depreciated by 18%. This, along with a recent 34% increase in the minimum wage, on top of a 55% increase six months prior, is expected to sustain inflationary pressures.

As the Istanbul property market continues its meteoric rise, it poses significant challenges for ordinary Turks struggling to find affordable housing. The government may need to implement further measures to address the growing housing affordability crisis and curb excessive speculation. Meanwhile, investors and analysts closely monitor the market, anticipating a potential adjustment in the future, albeit at a more moderate pace of growth.