TOKYO - As new condominium prices continue to rise in Japan, homeownership is becoming increasingly challenging for many buyers. As a result, many potential buyers are turning to the used condominium market in search of more affordable options.
In the Kansai region, the average price of a new condo reached approximately 54 million yen in the first half of fiscal 2024, making it difficult for ordinary households to afford.
However, purchasing a used condo comes with its own concerns, such as the quality of maintenance, the state of reserve funds for future repairs, and the overall management of the building. To help buyers navigate these challenges, Kazuhiko Tanaka, a Kyoto-based real estate consultant with over 30 years of experience and representative of Community Lab, offers expert advice on how to choose a used condominium wisely.
One of the most important factors to consider when evaluating a used condominium is the entrance. The entrance serves as the "face" of the building and is a strong indicator of overall management quality. A well-maintained and stylish entrance suggests that the property is properly cared for, which can make it more attractive to future buyers as well. Conversely, a neglected entrance with poor upkeep could signal deeper management issues that may affect the value of the property in the long run. Buyers should also pay close attention to the overall condition of common areas, as these can reveal signs of poor maintenance that may not be immediately noticeable within individual units.
Another crucial step in selecting a used condo is to visit the property multiple times. The surrounding environment can change significantly depending on the time of day and day of the week. A location that seems quiet and pleasant during the daytime on a weekday might turn into a noisy area at night due to nearby bars, restaurants, or heavy foot traffic. To get a more accurate understanding of the living environment, prospective buyers should visit the property at least four times—during both daytime and nighttime on weekdays and weekends. This approach helps uncover potential issues, such as excessive noise, traffic congestion, or other environmental factors that might not be immediately obvious.
In addition to the immediate surroundings, buyers should also consider future population trends and transportation access. Properties near stations where express or rapid trains stop generally hold their value better than those served only by local trains. Future urban developments, such as new commercial centers, infrastructure projects, or planned railway extensions, can also impact property values. Buyers who anticipate these changes early may be able to secure properties at more reasonable prices before demand increases. Those who plan their purchases with a long-term perspective can often benefit from significant appreciation in value over time.
Another often overlooked but critical aspect of purchasing a used condo is assessing the management quality and financial health of the property. While the interior of a unit can be renovated relatively easily, the quality of the building’s management is harder to change. Poorly maintained common areas, items left in hallways, or stained walls could indicate lax management and neglect. To avoid unforeseen expenses, buyers should carefully examine the building’s management regulations and financial records. Reviewing the property’s repair fund reports and projected maintenance schedule can provide insights into whether the building is financially prepared for future repairs. If the management regulations have not been updated for decades, it could be a warning sign of weak governance, which may lead to problems down the line.
Finding a condominium that meets all criteria perfectly is rare. Buyers must weigh their priorities and be willing to compromise on certain aspects to stay within budget. Whether it’s sacrificing proximity to a station for a more spacious unit or choosing an older building with better management over a newer but poorly maintained one, understanding trade-offs is essential. By applying these expert insights, buyers can make informed decisions and minimize the risk of future regrets.
Source: ABCTVnews
