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Indeed, I am a bit puzzled by the recent articles claiming Japan is housing heaven. There are a few things to keep in mind w.r.t. housing in Japan, and especially in Tokyo: 1. Buying houses is still very expensive. One of the reason it is "affordable" is because mortgages are low. 2. Housing is not a capital asset in Japan, but effectively a consumable good. As soon as you buy a house, the value get depreciated. I don't know the current numbers, but 10 years ago, the value of a house depreciated to nothing in 15 years. 3. This is one of the main reason why Japanese save so much, which has consequences on the economy. 4. The housing quality is terrible. Unless you can afford living in condos/high rise buildings/custom made houses, sound/heat isolation is non existent, amenities are not that great either. This is mostly caused by land high price: when you buy a house, 80+% of the cost is the land. Which explains 2. and 3. IOW, I would not put too much on the cultural difference: there are fundamental reasons why buildings are not valued, which is linked to the exorbitant cost of land in cities, especially in Tokyo, because of the paucity of land in Japan. Japan has 130 millions people living in 250000 km2, 80% of which is not usable for housing. There are also a lot of regulations on the land itself: https://www.nri.com/global/opinion/papers/2008/pdf/np2008137... |