On January 18th, the Yano Research Institute released data from a nationwide survey on the purchase, renovation and resale of second hand homes.

The Yano Research Institute, established in 1958 and receiving investment from the Kyodo News Group in 2018, provides deep economic analysis across a variety of sectors in the Japanese market, with housing research being one of those sectors.

The survey was conducted from October to December of 2021 by interviewing real estate companies that specialise in buying, renovating and reselling second hand properties.

The survey was conducted via face to face, telephone and email interviews, and by reviewing corporate filings if the real estate company was publicly traded.

Source: Yano Research Institute

In 2020, the second hand home purchase and resale market was reported by respondents to be about 36,000 units sold, down 10% from the previous year, based on the number of contracts for both condominiums and detached houses. 

The market was affected by the temporary suspension of economic activity due to the onset of the pandemic, however up until then, units sold were on a sustained upward trend.

Increased buyer demand was the reason quoted for increased sales as the price of brand new condo soared and remained high.  That said, buyers still desired a like-new feel to their property which is where renovated secondhand properties met that demand.

For 2021, with the economic impact of the pandemic easing for the residential property market, the number of contracts was forecasted to be 39,000 units sold, up 8.3% from 2020.   The survey was conducted from October to December last year hence the estimation.

As for the market outlook for 2025, respondents expect properties sold to expand to 50,000 units annually. 

The reason for this sentiment is high demand for home buying is expected to continue, fuelled by low and stable mortgage rates and the extension of homeowner tax incentives. 

Regarding supply, respondents thought the market is expected to expand as the stock of properties that will require renovation and remodelling increase as structures continue to age.

Further Reading

Yano Research Institute Survey Results for Renovated Second Hand Home (Japanese only; January, 2022)