Did the prices of real-estate went up over the past 2 years?

[milagrace2018]

I remember checking a 3LDK in a building in Tachikawa, and it was around 40m yen at the time. I wanted to start looking for a place, and I was checking again today, and a 3LDK in the same building is around 70m now.

I then checked for a 2LDK in our area (we payed about 20m yen), and the building next to us has a 2LDK for 35m.

The only thing I can think of is that the yen got weaker from the last time I checked, but I wasn't expecting that much of a price hike.

Not really sure what to do at this point.

 

[resjudicata]

@milagrace2018 Tokyo and other big cities: Yes

Rest of the Japan: No

 

[man2022]

@resjudicata Okinawa: Yes, very much

 

[arcticwind]

@milagrace2018 Tokyo area yes. Also rents have gone up by 10% on average.

 

[anonymous_iran]

@milagrace2018 Try to find Suumo magazines in your area, they usually have information about the average prices per sq meters in a span of a few years.

Although there are a lot of other reasons why the apartment you saw recently is more expensive than before (e.g. floor, years, direction, etc). It is definitely increasing especially in Tokyo and nearby cities.

If you are really interested in the prices of your surrounding, find a real estate agent there. They have a lot of historical data in your area. You can even pretend to be interested in a specific house, and see why they are more expensive.

I also feel there are many Reddit members very bearish in the real estate market. They live in a different area than you, so their answer is probably not applicable to your area.

Lastly, there are indeed a lot of foreigners investing in real estate in Japan. High rent fee, low interest rate, weak yen. I'd say it is really attractive for Asian countries.

 

[milagrace2018]

@xenliad

You have your head in the sand?

Apparently so

 

[xenliad]

@milagrace2018 You have your head in the sand? Yes!

 

[mfuller]

@milagrace2018 Yes they did, you can check the data per ku and station here https://www.akasakarealestate.com/main.pl?page=marketdata.htm

 

[wlc777]

@milagrace2018 Tokyo and suburbs yes, large increase in both land & structure

 

[littlelou]

@milagrace2018 Take a look at Tochdai.info for actual estimates.

 

[z_alan_bridges]

@milagrace2018 Saitama up as well. We bought 5.5 years ago and have also noticed that our area new and old places the same land size are up!

 

[paleouss]

@milagrace2018 Tachikawa did have a pretty big price increase in recent times.

 

[resjudicata]

@milagrace2018 Japan will again reach 1990s bubble era in real estate in a decade, due to dirt cheap yen and foreign investors flooding in.

The average Kato won't be able to afford a house, but that's not the primary concern of JGov and BoJ.

 

[arcticwind]

@resjudicata do you have sources for foreign investors directly causing this? I have seen some articles referencing commercial real estate price increases due to foreign investment, but almost none for residential.

 

[paleouss]

@arcticwind Kind of anecdotal but I heard since the China's evergrande crash, there do seem to be a lot of a Chinese trying to cash in here instead.

While a house may be a bit hard to rent but condos near a hot station I can see being in their sights.

 

[arcticwind]

@paleouss I heard this too. I also saw some articles about it, but no real hard numbers. Apparently when foreign buyers were banned in Canada it was only about 1-2% of the market. I want to know what the ratio is here.

 

[marycris]

@resjudicata The government want people to live outside of Tokyo anyways

 

[parkeratkins]

@resjudicata The average Kato will just have to be more comfortable not living in Tokyo or similar cities.

 

[reasoned_man_of_faith]

@milagrace2018 Yes, no, and maybe.

Depends on where you are talking about. Major cities are seeing various levels of increase, and minor cities/dying prefectures are seeing major decreases as population centers slowly rot out.

 

[ej13]

@milagrace2018 I think Tachikawa and surrounds became more expensive. I like this area and in the past I found cheap rentals, but recently I looked and it's not particularly cheap anymore.