Building characteristics in condominiums that prevent property values from declining

Three features of condominiums whose property values not likely to decline.

The floor area is 50 to 70 sq.m

Demand varies depending on the size of the room, so it is very important to select the right size.
Rooms with a floor area of 50 to 70 sq.m with 2LDK to 3LDK layouts are generic enough to meet the demands of all types of people, from families to singles.
In addition, it is possible that rooms of around 40 sq.m will become more popular in the future due to the declining birthrate and aging population, as well as the increase in the number of singles.

Age of the building is 10 – 20 years old

When choosing a condominium that will not lose its property value, we recommend that you choose a used condominium that is about 10 to 20 years old.
Some people begin their real estate investment by purchasing newly built properties, but this is very dangerous.
It is true that newly built properties are the most valuable, and they are priced higher than the market price of used condominiums in the surrounding area.
However, this is due to the fact that new condominiums are more popular with consumers and also because of the added profit of the developer.
In addition, it is said that there is a "new construction premium," meaning that the price of a new condominium will drop significantly in the first five years.
lthough it is not possible to give a general statement because it depends on the area and other conditions, asset values often decrease significantly the moment a new condominium becomes second-hand.

The building is well maintained

Whether or not a good management system is in place is a very important factor in maintaining property values.
As condominiums age, they begin to show signs of aging and deterioration in all areas, including walls and drainage pipes.
Since these factors lead to a decline in asset value, early detection of defects through periodic inspections and repair work are essential.
To cover such repair work, management fees and repair reserve funds may be collected at the time of purchase of investment real estate.
Since the lower the expenses are, the better the yield will be, it is an area where you want to somehow keep them low.
However, low management fees and reserve funds for repairs mean that less money is spent on building (property) management, which may result in inadequate maintenance.
In most cases, these amounts are specified in advance, but it is one point to judge whether the property is adequately managed or not.
In addition, when considering the purchase of real estate, a preliminary inspection is conducted.
Be sure to check not only the rooms but also the common spaces such as the entrance hall and lounge.
It is difficult to judge the quality of management inside a room because it is difficult for the management company to reach the room when there are tenants in the room.
It is also important to check whether there is a resident manager and whether the common spaces are carefully cleaned and maintained.

Characteristics of the surrounding area of condominiums where property values are unlikely to decline

There are 3 characteristics of areas around condominiums where property value are likely to retain their value.

Excellent public transportation

Condominiums in areas with good transportation access are less likely to lose their asset value.
Especially in central Tokyo, where many people commute to work or school by train, condominiums within a 10-minute walk from a station are highly recommended.
In addition, demand is even higher in areas where there are multiple train lines and the nearest major stations are those where rapid and express trains stop.
On the other hand, more and more people are moving to rural areas these days due to the spread of remote working.
The same applies when considering purchasing an apartment in a rural area, but try to find a property within a 10-minute walk from a station and in an area as close to the terminal station of that city as possible!

There is population growth

When investing in real estate, we recommend purchasing property in areas where the population is increasing.
If the population is increasing, demand will outstrip supply, and condominium property values will be less likely to decline.
However, as often reported in the news, Japan's population continues to decline, and it is predicted that the population will fall below 100 million by 2050.
While it is true that it is difficult to find an area where a large population increase can be expected, it is also true that there are areas that have not yet been hit by the population decline.
Before purchasing real estate, be sure to check the population trend of the area.

Safety

Safe and secure living is what everyone wants.
Therefore, areas with low crime and high security are in high demand, and as a result, condominium property values are less likely to decline.
Unfortunately, there is no area anywhere in Japan that can be said to be absolutely safe.
However, if the area has a low crime rate, or if the condominium has a resident superintendent as mentioned earlier, it can be said to be relatively safe.

Impact of Future Prospects on Investment Condominium Property Values

So far, we have explained the characteristics of investment condominiums whose asset values are unlikely to decline, from the viewpoints of the building and the surrounding environment.
In the last section, we will introduce the characteristics of condominiums whose asset values are unlikely to decline from perspectives other than these.

It has potential

The characteristics described so far have only taken into account the building and surrounding conditions as they exist today.
However, in real estate investment, real estate will be owned for many years to come, and the surrounding environment is expected to change significantly during that time.
Changes in the surrounding environment may affect the asset value of the condominium.
In other words, real estate investment must be undertaken while anticipating what changes will occur in the surrounding environment in the future and what impact these changes will have.
For example, the future potential includes the following:

●A new station will be completed as part of a large-scale redevelopment project, improving transportation accessibility.
●A shopping center will be built, making life in the area more convenient.

These can have a significant impact on the property values of condominiums in and around the area.
Such redevelopment project plans are often available on the Internet and should be checked in advance.

It is unique

Having uniqueness that is not found in other condominiums will help maintain asset value.
For example, there may be a park in front of the condominium where one can enjoy the changing seasons, or there may be famous tourist spots around the building.
Condominiums that can offer experiences that can only be enjoyed there are highly valuable and attract a lot of demand from the general public.

It has a great view and lots of sunlight

There are quite a few people who want to live in an apartment with a great view and sunshine.
This ties in with the earlier discussion of uniqueness, but some rooms offer views of Mount Fuji or Tokyo Tower.
If you are going to live on a high floor, you want to choose a room with a good view.
These types of apartments are rare, so it can be said that their asset values do not decline easily.

In conclusion

We have explained the characteristics of investment condominiums whose property values are unlikely to decline.
Please refer to these points and purchase a condominium whose asset value is unlikely to decline.
In addition, in real estate investment, it is most important to have the viewpoint of "if I were a consumer, what kind of condominium would I want to live in?"
If you do this, you will naturally be able to find a condominium whose property value will not decline easily.