Changes in the Japanese real estate market


Especially now during Golden Week in Japan the advertisement additions seem to reach the same thickness as the newspaper itself. Some of the advertisements are included every week, like for example the typical local supermarket flyers or the news about some pachinko machine upgrades, but this week was special. Every day at least 10 or more real estate in my closer surrounding in Tokyo were introduced.
It seems to me that the promotion of real estate (condos or homes) in Tokyo has undergone some changes since the earthquake, especially as it seems to me that efforts have increased for condominiums in taller buildings. Apart from the danger of soil liquidification at a common one to two-story home not much of the risk of earthquake damages seems shared at the multi condominium complex. The fear of being stuck in an elevator or then the challenges during the organized blackouts are perceived much worse in a skyscraper. From a marketing perspective I was surprised that in the pile of more than 50 different real estate ads for condominiums only one ad had shifted its common focus to details about their steps already taken for a safe structure built during an earthquake. I wonder when the rest of the condominium will start their shift, because I don’t see an advantage in being more effective by solely increasing the number of handouts.
Along the same lines of changes in the Japanese real estate market, I am curious about the long-term effect of the strategy of TamaHome, which is offering now monthly home loan payments by credit card. I wonder how many families will be able to enjoy then a new home only for a limited time, when all of a sudden their incoming cashflow changes and then they have to try to keep their loss to a minimum.

Brought to you by Sibylle Ito (シビル伊藤)

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