Lifestyle and Demographics

Articles on Akiya Lab | Roopt (Makigumi)

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

New Lifestyles and Changes in Real Estate Valuation

In modern society, changes in demographics and diversification of lifestyles are significantly altering traditional real estate values. Especially in rural areas, with the ongoing population decline, the demand and yield for new properties are no longer as promising as before. The rapid decrease in the younger population 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 people cannot adapt to changes after starting 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 real estate valuation standards based on new lifestyles. This idea aims to evaluate real estate on a more level playing field, rather than judging it by 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 a common view that renting an older property can offer greater value than buying one. 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 important 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 we are now in an era where the true value of a property must be accurately determined.

Summary

Changes in demographics and diversification of lifestyles are major factors altering real estate valuation standards. There is a need to move beyond fixed ideas about new properties and to find value in used properties and properties that cannot be rebuilt. A flat evaluation based on actual utility value, regardless of whether the 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)