The Residential Real Estate Transactions market in Japan continues to experience steady growth, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.
Customer preferences: In Japan, there is a strong cultural inclination towards homeownership, with many individuals aspiring to own their own homes. This preference for homeownership is influenced by the desire for stability and long-term investment. Additionally, Japanese customers value properties with good accessibility to transportation, amenities, and schools, as well as those located in safe and quiet neighborhoods.
Trends in the market: One notable trend in the Japanese Residential Real Estate Transactions market is the increasing demand for smaller, more affordable housing options. This is partly due to the aging population and shrinking household sizes. As the population ages, there is a growing need for smaller homes that are easier to maintain. Furthermore, the younger generation is also opting for smaller homes as they prioritize financial flexibility and convenience. Another trend in the market is the rise of eco-friendly and energy-efficient properties. With a growing awareness of environmental issues, Japanese buyers are increasingly interested in properties that have sustainable features such as solar panels, energy-efficient appliances, and eco-friendly building materials. This trend is further supported by government incentives and regulations promoting energy conservation.
Local special circumstances: Japan's unique geography and limited land availability contribute to the high demand for residential real estate. As an island nation with a mountainous terrain, usable land is scarce, especially in urban areas. This scarcity drives up property prices and creates a competitive market. Additionally, the frequent occurrence of natural disasters, such as earthquakes and typhoons, also influences the demand for properties that are built to withstand such events.
Underlying macroeconomic factors: The Japanese Residential Real Estate Transactions market is influenced by several macroeconomic factors. One key factor is the low interest rate environment. The Bank of Japan has implemented a monetary policy that aims to keep interest rates low to stimulate economic growth. This low interest rate environment makes borrowing more affordable and encourages individuals to invest in real estate. Furthermore, government initiatives and policies play a significant role in shaping the market. The Japanese government has implemented measures to support the real estate market, such as tax incentives for homebuyers and subsidies for energy-efficient renovations. These policies aim to stimulate demand and promote economic growth. In conclusion, the Residential Real Estate Transactions market in Japan is driven by customer preferences for homeownership, smaller and more affordable housing options, and eco-friendly properties. The market is also influenced by local special circumstances, including limited land availability and the need for disaster-resistant properties. Additionally, underlying macroeconomic factors such as low interest rates and government initiatives further contribute to the growth of the market.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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Mon - Fri, 9am - 6pm (EST)
