Abstract
The stock of condominiums for resale in the Kansai metropolitan area has been growing, and resale volume in that market continues to increase. Despite that growth, there is some concern that housing for resale in certain suburban areas far from major cities and in some inner-city neighborhoods may become “dead stock,” as some homes for sale in and around city centers have been, conspicuously, staying on the market longer and selling at lower prices. In this chapter, we present issues related to leveraging the resale housing market to address the problem of condominium dead stock through a study of the relationships between the characteristics of local residents and the local condominium resale market based on geodemographics and local differences in the stock of vacant homes for sale.
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Notes
- 1.
In this study, the six prefectures being referred to as making up part of the Kansai metropolitan area were Shiga, Kyoto, Osaka, Hyogo, Nara, and Wakayama.
- 2.
The Kinki Real Estate Information Network System (Kinki REINS) is a public interest incorporated association designated by the Ministry of Land, Infrastructure, Transport, and Tourism based on the Building Lots and Buildings Transaction Business Act. It was set up for the exchange of information between real estate brokers regulated by the six Kansai prefectures. Brokers report data related to their listings, principally of existing homes, and information on closings; the law mandates the reporting of information related to exclusive (when the seller grants a single broker the right to sell) and non-exclusive listing agreements.
- 3.
We applied to Kinki REINS to use some of their sales contract data. We used the data received to calculate time-on-market from the difference between the dates reported for the listing and the sale and to calculate the list-to-sale discount rate based on the reported selling and listing prices.
- 4.
For details (in Japanese), refer to the Experian Japan Co. Ltd. website at https://www.experian.co.jp/ems/mosaic.html; an English-language version is available at http://www.japanmosaic.com (last visited on June 18, 2018).
- 5.
Logarithmic transformation is used to calculate the sale price, time-on-market, square footage, property age, number of stories in the building, number of stories in the location, maintenance expenses, repair expenses, time taken to walk to the nearest station, and time taken to reach the nearest city center in Tables 4.4, 4.5 and 4.6. This is because these variables are skewed and are not normally distributed.
- 6.
There are five different types of arrangements when a real estate broker handles the sale of a property. They can be the seller, the proxy agent, or they can have an agreement with the seller: either an exclusive selling agreement, a non-exclusive agreement that also allows the seller to find a buyer themselves, or an “ordinary” selling agreement that allows the seller to use other brokers or find a buyer themselves. For details (in Japanese), refer to the Kinki REINS website at http://www.kinkireins.or.jp/baikai/ (last visited on June 18, 2018).
- 7.
The 2011 report on Urban Planning Research for the Kansai Metropolitan Area (in Japanese) (Kansai Economic Federation 2011) suggested that the Kansai metropolitan area, in which Osaka, Kyoto, and Kobe each have populations of more than 1 million, is a rare global instance of a multinuclear regional structure having three major cities along a single axis.
- 8.
ANOVAs showed significant differences for condominium resale price, price per square meter, and average square footage (m2) for the nine values of the dummy variable representing the areas along different railway lines as shown in Table 4.4, confirming that there were differences in character between properties sold along the different lines.
- 9.
Since 2013, sale prices have been rising due to the expansion of demand for existing condominiums, a result of the continued low-interest rates that have been part of the large-scale monetary easing by the Japanese government and the Bank of Japan.
- 10.
The variance inflation factors (VIFs) for all the explanatory variables were 5 or less, suggesting there was no need to be concerned about multicollinearity.
- 11.
Here, the coefficient of determination showed how much of the variance in the response variable was accounted for by the fixed effect variables alone.
- 12.
“As is sales” are the usual business practice in the Japanese real estate market. Buyer and seller agreements are written to the effect that the property is delivered to the buyer “as is,” without stipulations for inspections, repairs, remodeling, etc.
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Kamimura, Y., Uesugi, M., Yano, K. (2020). Geodemographic Characteristics of Vacant Houses in the Resale Condominium Market in the Kansai Metropolitan Area. In: Kubo, T., Yui, Y. (eds) The Rise in Vacant Housing in Post-growth Japan. Advances in Geographical and Environmental Sciences. Springer, Singapore. https://doi.org/10.1007/978-981-13-7920-8_4
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