Japanese Housing

Revitalizing the Second-hand market

If you visit a residential neighborhood in Tokyo, like Setagaya or Meguro, you will see that Japanese houses are different from those in western countries. Most Japanese homes are built of woods, and the lifespan of the wooden houses is short at around 30 years.

As earthquakes are frequent in Japan, wooden houses are better at withstanding minor quakes.  Woods may bend and warp when they are subjected to a force, and woods breathe and absorb moisture. Considering hot and humid Japanese summer, woods may be ideal for houses. 

Also the appraisal way of residential housing is different from the US and Europe.  Under the current appraisal system, the value is based on three factors, namely the year of construction, a floor plan and the location. 

In the US, the year of construction does not matter as much as the quality and condition of the home, and its location, and other factors influence the resale value.  Unlike the US and Europe, an individual home improvement in Japan is not considered when measuring the value of second-hand houses.

Because second-hand houses have no value, Japanese prefer new houses. The Nikkei reports that sales of second-hand homes account for 14.7% of total home sales in Japan, while in US and UK second-hand homes account for 70~90% of total sales. 

However, the population keeps aging and the vacant homes are increasing. The Ministry of Land & Transport plans to make major changes to the appraisal systems of residential housing in Japan, in order to revitalize the second-hand housing market.

We would welcome if the new appraisal system is introduced to determine the fair value of the property. Nonetheless, the Japanese prefer the newly built homes, because of user-friendliness and efficiency which bring owners comfort.