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Feb 15

Real Estate in Japan, What to expect in 2015

The case of the Japan as a real estate market is quite particular and different from our US market. Old real estate is worthless in Japan. After having reached stratospheric prices, the price of the estate to the Japan has been declining for more than 18 years.

History of Japanese real estate prices

housing sector in JapanJapanese real estate market has undergone two real estate crises since 1970 and he has still not recovered from the last real estate crisis… dating from 1990!

After a first peak of achieved prices in 1973, the Japan real estate fell as fast to the price at the beginning of the 1970s in 1978.

Japanese real estate later departed on a bullish cycle for 12 years, reaching completely crazy prices in 1990.

As trees do not rise up to the sky, the market eventually backfire. This reversal of the housing to the Japan market was brutal and since 1990 prices continue to drop, they have achieved their lowest price for more than 35 years.

From these graphs, the period of falling real estate prices coincides with a sharp increase in the number of retirees and dependents. It is also the case for many other countries.

Old real estate properties are hard to find

Another very striking fact in the Japanese real estate is that the old real estate there is little or no. Indeed, the quality of buildings do not allow Japanese properties last, they degrade quickly and rapidly lose any value.

A Japanese will buy so practically nine real estate and when a family leaves a House, the latter is shaved to make room for a new construction.

Real estate in 2014 Japan: cautious recovery

With strongly prices fall the Japanese can buy larger housing. The number of construction remains above demand and even if the market starts slowly, the Japanese are not rushing to buy. Good many of them are still marked by bankruptcy only to lead to the bursting of the bubble of the Japan in 1990 and the number of suicide that followed.

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