Article published on Vacant House Lab | Roopt (Makigumi)
Makigumi, the company that operates Roopt, is constantly researching case studies and other information on revitalizing vacant houses and publishing them as columns.
The field of real estate investment has seen changes in evaluation criteria and social perception over time. In particular, the importance of adapting past evaluation models to today's diverse lifestyles and social conditions is being questioned.
Traditional real estate valuation models were characterized by their reliance on lifestyles such as nuclear families and commuting, as well as a bias towards newly built properties. These models were based on people's lifestyles and values, and financial institutions' lending and investment schemes were built on these assumptions. However, these assumptions are being challenged by changes in modern society.
In modern times, we are seeing new lifestyles and demographic changes, such as the spread of workation and remote work, the rise of the sharing economy, and advancements in technology. These changes are important factors in building new models for real estate investment.
In today's real estate market, reviewing collateral value and reassessing property prices are crucial. The main reason why low-priced properties don't enter the market is that appropriate collateral value hasn't been set. By conducting proper valuations, vacant houses and underutilized properties will start moving in the market, promoting various uses, including renovations.
Furthermore, many challenges exist in Japan, including the lack of widespread adoption of non-recourse loans, the overvaluation of new properties, and the low liquidity of existing properties. These issues are deeply connected to society's overall perception and evaluation of real estate.
There is a need to dispel the existing perception that buying, selling, or investing in used real estate is a "dirty business" compared to new properties, and to build evaluation models that are in line with new values and lifestyles. A multifaceted approach that includes not only new construction but also the possibilities 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 approach to real estate investment. Establishing new valuation standards that go beyond past valuation models and reflect contemporary social conditions and lifestyle changes is crucial for the future of the real estate market. What is needed now is for society as a whole to share a new set of values regarding real estate and to build investment and valuation schemes that reflect these values.
source: Vacant House Lab
FIND YOUR STAY
Please feel free to contact us for any inquiries regarding accommodation reservations, move-in consultations, viewing appointments, media inquiries, etc.
inquiry
