The rise in Japanese real estate prices is due to increased demand for more convenient properties and apartments near train stations.
According to a survey by a private research company, last year, the average price per new apartment in the Japanese market reached a record high of 47,390,000 yen, equivalent to about 440,000 USD. Japan Broadcasting Corporation (NHK) said.
The Japan Institute of Real Estate Economics also said that in 2017, the average apartment price increased by 1,790,000 yen, or 3.9%, compared to the previous year.
The new price is higher than ¥ 46,180,000, equivalent to $ 430,000 in 2015 and is the highest since the index was recorded in 1973.
The high price is due to increased demand for high-end real estate and apartments near train stations. Another important factor is the increase in labor costs and land acquisition costs.
According to data released on Wednesday, the average price of a new apartment in the Japanese market in 2017 reached a record high of 47,390,000 yen, or over 439,000 USD.
Regarding the reason why Japanese real estate prices are increasing, real estate researcher Sakuma Makoto said that in terms of apartment sales, this figure is almost unchanged compared to the previous year. meaning no growth or decline is seen. However, apartment prices continue to rise.
The reason is that the Japanese economy is developing and the strong monetary easing policy of the Bank of Japan (that is, the Central Bank of Japan) helps maintain the low lending interest rates for buying houses.
In addition, construction projects increased ahead of the 2020 Tokyo Olympic Games, leading to a shortage of materials and manpower, resulting in increased construction costs and increased apartment prices.
However, it is difficult for apartment prices to rise higher in the suburbs. The reason is that even though people have higher incomes, they do not have much money to spend due to increased social security and other expenses. In contrast, the price of apartments in the downtown area tends to increase, because the rising stock prices make the assets of some people increase.
Mr. Makoto also warned that the price of Japanese real estate in the coming time will continue to rise. The main reason is that Japan’s consumption tax is expected to increase from the current 8% to 10% in October 2019, and so it is likely that the demand for apartments will increase at the time just before tax increase.
The second point is Japanese monetary policy. Mr. Kuroda Haruhiko, governor of the central bank of Japan, was reappointed for another term. In the context of many other large industrial countries outside Japan, such as the United States, raising interest rates and tightening monetary policy, we need to monitor how Japan’s monetary policy will affect interest rates. home loans.
The third point is whether the housing market will continue to be strong until the Tokyo Olympics. According to a survey of people involved in the real estate market, and 70% of them said real estate prices will reach the highest level before 2020. Therefore, real estate thrives in Tokyo and the area. neighborhood, at least until the 2020 Olympics.