Doubts are mounting about the efficiency of government efforts to support Japan's cash-strapped property firms as the list of corporate failures in the sector is seen as never-ending, analysts said.

Such concerns were underscored when two companies in the struggling sector filed for bankruptcy protection late last week, while developer Properst Co (3236.Q) and Atrium Co (8993.T) spooked investors with unexpectedly big revisions to their outlooks on Tuesday.

Analysts are sceptical about the government's emergency measures announced last month to help cash-strapped property firms from collapsing, saying the plan lacks size and details.

Many analysts also said banks remain tight on lending to small and medium-sized firms despite the government's orders for them to be more flexible when examining lending requests.

"From what we had heard from the Ministry of Land, Infrastructure and Transport, we see that the amount of support has not yet been decided," said Goldman Sachs analyst Atsuko Chiyoda.

"Property companies and funds are set to have an extremely tough time in the coming months," said Chiyoda, adding that many of them are due to repay loans at the end of March.

In 2008 alone, 16 listed property firms including Urban Corp and Morimoto Co went under after facing difficulties in raising operating funds, even though many of their businesses were profitable.

Dozens of other property firms are also in trouble as banks rein in lending amid the global credit crunch, while demand for apartments and office space weakens with the Japanese economy in recession for the first time in seven years.

Source: http://uk.reuters.com/