MONDAY, JANUARY 31, 2022
Recently, the Yano Research Institute provided information on buying, renovating and reselling of second hand properties. The Institute has been instrumental in providing accurate economic analysis regarding various sectors within the Japanese market, with housing research being one of the sectors analyzed.
According to the institute, the number of second hand homes purchased in the year 2020, was around a 36 000 units sold. This was seen as a 10% decrease from the previous year of 2019. The main factor that contributed to such a decrease would obviously be the pandemic. During that time, all industries suffered because of temporary suspension of economic activity by the government. However, if it hadn’t been for the economic slowdown, sales would have reached an upward trend. Increased buyer demand continues to be the reason why sales have now picked up again. In the year 2021, the pandemic eased up a bit and was a lot kinder to the Tokyo real estate market. The forecast of units sold would be 39 000, an 8.3% increase from the year 2020. The research was conducted from October to December of last year, hence this estimation. As far as looking into the future goes, the market outlook for 2025 has the expectation that 50 000 units will be sold annually.
The reasons for such expectations are that- home purchasing in Tokyo has a very high demand because of the low and stable mortgage rates, as well as the homeowner tax incentives that are available.
Source: Rethink Tokyo News: https://www.rethinktokyo.com/news/2022/01/19/annual-renovated-second-hand-property-sales-reach-fifty-thousand-units-sold-2025