Articles published in Akiya Lab | Roopt (Makigumi)
Makigumi, which operates Roopt, regularly researches case studies and other information on vacant house revitalization and publishes them as columns.
The field of real estate investment has seen its evaluation criteria and social perception change with the times. In particular, the importance of how past evaluation models must adapt to modern diverse lifestyles and social conditions is being questioned.
Traditional real estate evaluation models were characterized by lifestyles such as nuclear families and commuting, and a bias towards new properties. This model was based on people's lifestyles and values, and financial institutions' lending and investment schemes were built on this premise. However, these premises are now being forced to be re-examined due to changes in modern society.
Today, we see new lifestyles and demographic changes, such as the spread of workations and remote work, the rise of the sharing economy, and the evolution of technology. These changes are important factors in building new models for real estate investment.
In the modern real estate market, re-evaluating collateral value and property prices is crucial. The main reason why low-priced properties do not circulate in the market is the lack of appropriate collateral value. By conducting proper value assessments, vacant and unused properties can enter the market, promoting various uses, including renovation.
Furthermore, many challenges exist, such as the current lack of widespread non-recourse loans in Japan, excessive valuation of new properties, and low liquidity of used properties. These issues are deeply related to society's overall perception and evaluation of real estate.
There is a need to dispel the existing impression that the buying and selling or investment in used real estate is a "dirty business" compared to new properties, and to build an evaluation model that aligns with new values and lifestyles. A multifaceted approach that includes not only new constructions but also the potential of used properties and renovations will lead to the development of a healthier and more sustainable real estate market.
As times change, so too must the nature of real estate investment. Establishing new evaluation criteria that go beyond past evaluation models and take into account modern social conditions and lifestyle changes is a crucial key to the future real estate market. It is now necessary for society as a whole to share new values regarding real estate and to build investment and evaluation schemes that reflect them.
First published: Akiya Lab (2024 - now integrated into this site)
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