Japan real estate: Challenges of home ownership and vacant properties

The Japanese real estate market faces complex challenges regarding home ownership and the management of vacant properties. When attempting to sell inherited homes, owners often face pressure to reduce prices if a buyer is not found within several months. However, experts suggest that price reductions should be based on market data, such as inquiry volume and local transaction prices, rather than just the passage of time. Owners must also weigh the cost of maintaining vacant properties against the potential loss in sale proceeds.

Historically, the cultural emphasis on home ownership in Japan was driven by government economic policies, such as the 1960 Income Doubling Plan, which aimed to stimulate various industries through construction. The introduction of housing loans further solidified the norm of buying homes as a way to build assets. However, with declining populations and an increase in vacant houses, properties that were once considered assets can now become 'negative assets' that are difficult to sell.