It is widely recognized and acknowledged that there are more than 10 million vacant homes in Japan. Most would think that this are all in the country side, but that is not the case there are vacant homes in Ciba Prefecture, about 30 minutes from the Imperial Palace!
The son of a friend who works as a model in Tokyo has recently bought one of these abandoned homes (with furniture) for $1.00. Obviously they neighbours are happy since the house had been vacant for a decade.
However, the implication is that for about $100,000 he will have a house in downtown Tokyo. 40 years ago the same property would have been worth millions.
Japan is the first where the value of real estate is dropping dramatically. My friend was telling me that in Chip (even closer to the imperial palace) there are free standing houses that have been for sales for decades with no takers. The prices are reasonable (about $150,000 for 250 square meters (3000 square feet). In central Tokyo!
China’s rapid demographic implosion, it’s already excessive real estate and expansion are almost certain to be next, Real estate that has been the biggest investment free ride for the past 75 years is about to become far less interesting
Comments