Lifestyle and Demographics

Articles published in Akiya Lab | Roopt (Makigumi)

Makigumi, which operates Roopt, constantly researches case studies and other information regarding the revitalization of vacant houses and publishes them as columns.

New Lifestyles and Changes in Real Estate Valuation

Modern society is experiencing significant changes in traditional real estate values due to demographic shifts and diversifying lifestyles. Especially in rural areas, as the population declines, the demand and yield for new properties are no longer as promising as before. The rapid decrease in the younger generation and the increase in non-nuclear family living arrangements are also major factors changing the criteria for real estate valuation.

Real Estate Valuation Adapting to Lifestyle Changes

As divorce becomes more common, and if couples cannot adapt to subsequent changes after starting a life together, the burden of loans is increasingly becoming an issue. Such societal changes are leading to a reevaluation of excessive reliance on new properties and a movement to find value in used properties and properties that cannot be rebuilt.

The trend of accepting "living in a used property for 20 years" with the same sense of security as a new build indicates a new standard for real estate valuation based on modern lifestyles. This approach aims to evaluate real estate on a more neutral basis, rather than solely on whether it is new or if the buyer is a company employee.

Differences in Valuation Between Buying and Renting

The valuation of a property differs between buying and renting. It is generally understood that renting an older property can offer greater value than purchasing it. This is because the utility value of a property in the rental market is evaluated more flexibly than in the purchase market.

While full loan arrangements for new properties or individuals with good credit were once common, there is now a demand to correctly evaluate the actual utility value of properties, whether they are 10 or 50 years old. It is crucial to assess and appropriately value a property's utility regardless of its age. The cost of renovation should also be included in this evaluation, as it is now an era where the true value of a property must be determined.

Summary

Demographic shifts and diversifying lifestyles are major factors changing real estate valuation standards. A perspective that goes beyond the fixed idea of new construction and finds value in used properties and properties that cannot be rebuilt is needed. A neutral evaluation based on actual utility value, regardless of whether a property is bought or rented, will become the new standard in the future real estate market.

First published: Akiya Lab (2024 - now integrated into this site)