On August 2nd, Nomura Real Estate Solutions released the findings of its 27th Survey on Home Buying Sentiments.
Conducted online from July 1 to 14, the survey garnered 2,043 valid responses from 219,874 members of Nomura's online community.
Courtesy of Nomura, edited by Patience Realty.
A notable 44.9% of respondents anticipate a rise in real estate prices, marking a 0.5 percentage point increase from the previous survey and the highest percentage since the survey's inception in 2011.
Conversely, 28.4% expect prices to remain stable, reflecting a 2.6 percentage point decrease, while 17.7% foresee a decline in prices, indicating a 2.8 percentage point increase.
Respondents who believe prices will rise cited economic factors such as yen depreciation, inflation, and labor shortages, which have driven up the cost of materials and expenses.
On the other hand, those expecting a decline in prices argued that further price increases could deter potential buyers, leading to a market slowdown.
Selling Japan Real Estate: Is Now the Right Time?
When questioned about selling real estate, 21.0% of respondents felt it was a good time to sell, with an additional 58.8% leaning somewhat towards this view.
Courtesy of Nomura, edited by Patience Realty.
In contrast, 14.2% were somewhat against selling, and 6.0% firmly believed it was not the right time.
The leading reason for considering it a good time to sell, cited by 75.6% of respondents, was the rise in real estate prices.
Additionally, 57.2% believe current market conditions are advantageous for sellers.
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Some respondents, 15.8%, noted that low mortgage rates make it easier for buyers to secure loans, while 14.5% highlighted the abundance of prospective buyers as a positive factor.
Buying Japan Real Estate: Is Now the Right Time?
The survey also revealed a decrease in the number of respondents who think it is a good time to buy real estate, with only 32.8% expressing this sentiment, a 3.5 percentage point decline from the previous report.
Courtesy of Nomura, edited by Patience Realty.
Those considering it a good time to buy cited several reasons. A significant 48.2% believe mortgage interest rates will rise in the future, making now a more opportune time to purchase property.
Meanwhile, 46.3% think real estate prices will continue to climb. Additionally, 45.1% cited the present low mortgage interest rates as a motivating factor.
Sources:
R.E. Port News (Japanese only)
Nomura 27th Survey on Home Buying Sentiments (Japanese only)
