The approach of the holidays provides a good opportunity to look back and take stock, before moving forward.
Its been an eventful 12 months in the Japanese economy with ground breaking on a number of new projects, changes in laws and politics, as well as new economic trends, all playing a role on the state of Tokyo residential real estate.
Below are the top stories as recorded by visits to our website. Some you might remember, some might be new to you, others might just serve as a reminder.
Too Good to be True: The Risk of High Yield Properties
For those in the know, Tokyo has often offered the allure of being a major city with high-yielding property. We sometimes receive links from other property sites advertising high yield properties and are asked why we are not introducing the same.
Sales Director Shirley Yan explains that though she is already aware of the property is sent, upon looking closer there was a reason the property was yielding so high; the price was cheap for an unsolvable reason.
Large Sharks are Entering the Daily Stay Market
According to AirDNA to date, Tokyo has 18,478 total listings in the city, a number that has been steadily increasing since 2014.
So far, the daily stay market has been dominated by AirBnB however recently there have been announcements that Rakuten and Lifull Homes will launch their own competitor site targeted the exact same audience.
Financing is the Egg that Comes After The Property Chicken
Purchasing a property isn’t something one rushes into and learning about the market is always best.
However most people miss an obvious step when property hunting and that knowing what lender will lend you how much.
Home Not Selling? Try Staging
Staging is not a common practice in Tokyo for second hand property. There is no other reason for this than the domestic culture not understanding the benefits.
Brand New Condos: Then and Now
Shirley Yan started focusing on adding brand new properties to her repertoire in 2013. The climate then was one where a brand new condo in Minato ward was priced lower than second hand.
Starting April 1st, 2018, the real estate industry is introducing a new licensing system for home inspectors. This change is aimed at increasing the safety of second hand home purchases.
Currently, the trend for home buyers is to purchase brand new due to the perceived safety of buying from a reputable developer instead of an individual.
Editor’s Note: Robin is the Marketing Manager for Housing Japan. He is involved with property promotion and market analysis.