Mercury Co., Ltd. Used condominium price increase rate survey: It is difficult for such condominiums to drop in price

[Mercury Co., Ltd.] Used condominium price increase rate survey: It is difficult for such condominiums to drop in price
*Mercury Co., Ltd.*
Press release: September 17, 2024
**
It is difficult for condominiums like this to go down in price. Used condominium price increase rate survey
Mercury Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo) provides a real estate marketing platform that utilizes real estate big data and technologies such as AI.
Representative Director and CEO: Jin
Takahiro, Securities Code 5025 (hereinafter referred to as the “Company”) communicates industry trends from a unique perspective. This time, we investigated from various angles what characteristics make it difficult for condominiums to fall in price, targeting second-hand condominiums that were built less than 20 years ago and have been on the market since 2023.

As the price of new condominiums increases, the price of used condominiums also rises.
Recently, there are many properties mainly in urban areas that are being traded at higher prices than when they were newly built and sold, but what kind of condominiums are unlikely to decline in value? Let’s take a look at condominiums that are less than 20 years old and have been on sale since 2023.

* ■Urban areas tend to have less tendency to decline in value* The table above shows the price increase rate by prefecture. The city with the highest price increase rate was 49.6% in Tokyo, which shows that the price has risen to about 1.5 times the price at the time of newly built condominium sales. This is followed by Osaka Prefecture with 37% and Kyoto Prefecture with 31%. In each area, the price increase rate tends to be high in urban areas and low in suburban areas.

* ■The larger the scale, the lower the value.*
The table above shows the price increase rate by total number of units. The average price increase rate for condominiums with 200 or more units in Kansai and 300 units or more in the Tokyo metropolitan area exceeds 40%, and in each area, the price increase tends to increase as the total number of units increases.

* ■Tower apartments are a special case*
The table above shows the price increase rate by building floor number. In each area, the rate of increase in prices has increased
significantly between 10 to 19 storeys and 20 storeys (tower condominiums). In addition, the price increase rate for condominiums with 50 floors or more (there is no second-hand distribution in the Tokai region) is 87.7% in the Tokyo metropolitan area and 72.3% in the Kansai region, which is particularly high compared to other floors, and the higher the building floor, the higher the price increase rate. It can be said that there is a trend.

* ■The “Station Near Myth” is not a mistake*
The table above shows the price increase rate by the number of minutes on foot from the nearest station.
In each area, the rate of price increase tends to increase as the walking distance decreases. It can also be seen that the price increase rate is significantly lower for properties that are more than 16 minutes walk away and that are accessible by bus compared to properties that are within 15 minutes walk.

* ■Prices are difficult to fall for small and premium housing units* The table above shows the price increase rate by area occupied by each dwelling unit.
In each area, the rate of price increase was highest for properties over 120 square meters. 120 square meters
The above housing units are often supplied as premium housing units on the upper floors of condominiums, and when newly built, the price is often higher than that of regular housing units, but when second-hand units are distributed, the price is higher. You can see that it is easy to get a value that exceeds that.
Also, 40 square meters, 50 square meters, 60 square meters
Overall, there is a tendency for prices to increase at a high rate. In addition to the fact that the price at the time of new construction was kept low because of the small area, there is a tendency for new condominiums these days to have a smaller exclusive area in order to suppress the increase in prices as much as possible, and as a result, when newly built condominiums were sold, they were small. This is thought to be due to the fact that used condominiums have also expanded in the amount of exclusive space that families and
dual-income households can afford.

* ■Upper floors are more advantageous*
The table above shows the price increase rate by floor of the housing unit. In each area, the rate of increase in prices increases as you move up the floor. Furthermore, the price increase rate is more than 10 points higher on floors 20 and above, which are limited to tower apartments, than on floors 19 and below.

* ■North facing is advantageous*
The table above shows the price increase rate by direction of the main opening of the dwelling unit.
In each area, the lowest rate of price increase is facing south, followed by the east and west, and the highest rate of price increase is facing north, which is the exact opposite of the general price setting for new construction. North-facing, west-facing, or
east-facing dwelling units are often priced lower when newly built than those facing south, and are often found in tower condominiums that often have openings in four directions, so the price increase is higher. This is likely to be the reason for the increase.

This time, we calculated the rate of increase between the price at the time of new construction and the price at the time of used
distribution under various conditions.
As I mentioned at the beginning, real estate prices are soaring these days, and there are many cases where used property prices are higher than new prices, but in this survey, we looked at the conditions under which the rate of price increase was relatively high. Even if the condominium market price fluctuates in the future, it is thought that the conditions will remain such that the value will be relatively unlikely to decline.
If you include “difficulty in lowering prices” as a condition for choosing a home, why not refer to it?

・Calculate the price increase rate based on new condominium data from Realnet Condominium Summary and used condominium data from a private housing information company.
・Metropolitan area (Tokyo, Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, Gunma), Kansai (Osaka, Kyoto, Hyogo, Nara, Shiga, Wakayama), Tokai (Aichi) Applicable to used condominiums (residential units) that are less than 20 years old and distributed from January 2023 to the end of March 2024 in Mie Prefecture, Mie Prefecture, and Gifu Prefecture. ・Excluding investment properties

* [About Mercury] *
Since our company was founded in 1991, we have developed our business using “real estate big data” as our weapon.
“Big Data × Technology
We will drive the future of real estate. ” is our vision, and in recent years we have been providing a real estate marketing platform that uses technology such as AI in addition to conventional big data. By continuing to provide high-quality services, we aim to achieve further customer satisfaction and expand our business. We will continue to deliver “confidence” to help all stakeholders involved in the real estate business make the best choice.

* 【Company Profile】*
Company name: Mercury Co., Ltd.
Address: 42nd floor, Shinjuku Sumitomo Building, 2-6-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo
TEL: 03-5339-0950 (main)
FAX: 03-5339-0951 (main)
URL: https://mcury.jp/