As you probably know the real estate trends in Japan are very similar to the rest of the world. And these days are very popular real estates with a higher price, higher mortgage and of course younger buyers who buy them. But it doesn’t matter how old you are when you’re buying a real estate, it’s matters how smart you are. And the most important thing is how big your budget is.
Real estate trends in Japan
You probably heard that during the course of 2017 and early 2018, home prices made a giant 10% jump. Wow! This year, however, may be a different story. Home prices are estimated to rise in 2019, but at a much slower pace, and the number of homes for sale is expected to increase by a small 1%. That combination is enough to discourage many buyers in Japan who are on the fence about purchasing a home.
Eager buyers in the market belong to new real estate trends in Japan. Many of them are looking for newly built homes. In fact, new home construction is projected to increase by 8% in 2019. That’s the good news. Here’s the bad news: There just aren’t enough new homes to go around in some areas. Plus, construction companies also don’t have the manpower to keep up with demand. But what are you going to do now? Well, the only thing you can. Expect the new construction that is available to go for a higher price.
What higher prices mean for sellers and what for buyers
A nice profit may be on the horizon! The number of homes sold next year is still expected to rise, even if it’s at a slow pace. That’s great news for sellers! And if it comes to that you should be aware of your competition. Start with how to prepare your home for sale and work with a real estate agent to help you list your home at the right price. And be sure to wait for the right offer. Some buyers may try to gut punch you with a low number. If you aren’t in a hurry to move, wait for an offer that gives you the most profit.
If you’re going to buy a home in Japan’ expensive market, you absolutely must find out how much house you can really afford. Don’t rush into a home purchase that doesn’t make financial sense for you. But if you want to get prepared to buy and you’re committed to your budget, here are some options to consider:
- Keep saving. If you stay patient and motivated, you can save for a five-figure down payment by this time next year.
- Sacrifice some wants. If you can’t afford to buy the house you want, be willing to give up some “nice-to-haves” for your “must-haves.” Find the least expensive home in the best neighborhood you can afford and you can upgrade as your income and savings increase over time.
- Expand your search. You might be surprised at the gem you can find in a less popular neighborhood in Japan. Connect with a real estate agent who really knows the area. Because that is the best way to find a home that fits your budget and lifestyle.
Higher mortgage interest rates
A mortgage is definitely one of the most important real estate trends in Japan. It is a big commitment, and adding higher interest rates to the mix will make many buyers pause. Partner up with a real estate agent who understands the current market. They’ll help you set expectations for how much you can make, and how long you’ll have to wait for the right offer. But for buyers, if you’re not buying with cash, be smart and go for a conventional 15-year fixed-rate mortgage. That way, you know exactly what your payment will be over the life of the loan. And if you are moving internationally you can use some of these international transportation methods.
Millennials in Japan
You already know that starting over in Japan can begin with buying a real estate. And when it comes to millennials they are definitely on the list of real estate trends in Japan. They are busting all over. They’re getting older and finding stable careers. Their household income has increased and they’re looking to buy their first homes in middle and upper-middle class neighborhoods. This works out perfectly for them as more baby boomers are retiring and downsizing. Next year, millennials will lead the way in the number of mortgages, accounting for 45% of the market.
What millennial home buyers mean for buyers?
When you’re looking for a three-bedroom, single-family home in the suburbs, expect to have a lot of competition. You may have to reprioritize what you want in a dream home. The first thing is you need to know what you want. Decide what you absolutely need in a home. Compare your individual lists and combine them for your real estate agent to use as the foundation of your home search. Hire an experienced pro. Many millennial home buyers use real estate agents to purchase their homes. Get the help of a pro so the home-buying process is smooth for everyone. Also if you need help with relocation you can contact a reputable moving company such as Kokusai Express Japan.
What millennial home buyers mean for sellers
Millennials in Japan start their search online so sellers need to make the best possible impression on the internet. They have to make sure to invest in high-quality photos. And yes, of course, square footage matters. But millennials are usually more concerned about how sustainable and usable each space is. The next is location. A lot of millennials are looking for homes that are close to everything. And that offers big cities such as Tokyo. If the home is in a walkable area with access to public transit, expect millennials to come knocking at your door. Millennials are used to living in the age of high-tech advances and Amazon Prime, they’re looking for energy-efficient homes with smart appliances. And if the seller doesn’t have them, they’ll look elsewhere or lower their offer so they can upgrade after they buy.
