2019-12-30

Rising Interest in Buying and Renovating Older Homes Among Japanese

News

Home Co., Ltd. released a report showing a rising interest in purchasing older homes with plans to renovate them among Japanese customers over 20 years old. In the survey, 68% of customers said they preferred to buy an older home versus 12% who preferred a newly built home. When respondents were asked if they intended to renovate their home, 77% replied, "Yes."

When respondents were asked why they preferred an older home, 83% responded with "Affordability." The second highest answer was "Good location" at 54%. When asked what problems they thought existed with older homes, 41% stated, "There seem to be hidden defects," followed by 39% citing "Earthquake safety."

The majority of buyers who purchased an older home decided on a renovation for the following reasons: to change the interior design to their liking; to change the wallpaper; or to replace the floors. 95% of buyers answered that they are happy they decided to renovate their home.

The average cost spent on a renovation for condominium buyers was 4.5 million yen ($41,490), while single-family homebuyers paid 6.7 million yen ($61,774). Coupled with the price of the property, existing condominium buyers paid 28.5 million yen ($262,827) while single-family home buyers' total costs were slightly less at 25.7 million yen ($237,005).

Source