創業者ブログ

On the resale housing market in Japan
(Sep.12, 07)

I have thought that the resale housing market of Japan remained immature.
Why is that so? I can name several reasons.

First, a Japanese houses are generally not so durable.
According to the report by the Ministry of Land, Infrastructure and Transportation, the durable years of Japanese houses is 30 while American houses 44 and British houses 75. It is obvious that Japanese houses are destructible, compared to American and British houses. In particular, Japanese houses are vulnerable to fire and natural catastrophe.

Secondly, Japanese generally thinks that a house are but a places of passage. Particularly in the areas where house ownership rate is law, they tend to think that a house is only necessary to secure an accommodation.

Thirdly, many Japanese want to build such a place of passage in their own lifetimes. In fact, the average of the durable years of Japanese houses, which I mentioned above, is exactly equal to the years of one generation of Japanese.

Fourth, prefab building of and condominiums companies are wield enormous influence over Japanese housing situations. They continually stimulate the market of new residential housings. As a result, the rate of used houses in the entire housing market is only 13% in Japan; this rate is 78% in the U.S. and 89% in England. You can clearly see how Japanese housing market is anomalistical.

Fifth, the tax system of Japan is better for building new houses, rather than for buying used houses. This is the result of Japanese government's serious omission of the policy designed just after the WWII when Japan suffered from a housing shortage.

Sixth, the business circles associated with the resale housing market are still infant. For example, remodeling and DIY industries are both quite weak compared to those in European countries and the U.S. It is required for booming of resale housing market to foster these associated industries.

In my view, the resale housing market is the last large market for house lease, real estate, and construction industries of Japan. Such a promising market still remains intact.