Real estate in Osaka and Kansai / Real Estate Market Trends COVID-19 related crisis

2021 latest / Real Estate Market Trends COVID-19 related crisis

“Land Price LOOK Report (Land Price Trend Report on Highly Used Lands in Major Cities. The Ministry of Land, Infrastructure, Transport and Tourism announced the altitude of major cities” released by the Ministry of Land, Infrastructure, Transport and Tourism’s Real Estate and Construction Economy Bureau on November 19, 2020. A quarterly survey of land price trends for land used, etc. to clarify leading land price trends. The survey targets are 100 districts nationwide, 43 districts in the Tokyo area, 25 districts in the Osaka area, 9 districts in the Nagoya area, and regions. According to “23 districts in the area.)”, Except for one district, it was flat or fell.

　◆The volatility classification remains unchanged in 87 districts, shifts downward in 10 districts, and shifts upward in 3 districts.
　◆The number of rising districts was the same as the previous period, the number of flat districts decreased from 61 districts to 54 districts, and the number of falling districts increased from 38 districts to 45 districts.
　◆By use, the percentage of commercial areas is higher than that of residential areas. By region, the proportion of areas where metropolitan areas have fallen is slightly higher than that of rural areas.

Due to the impact of COVID-19, there is a decline in demand due to a decline in profitability of hotels and stores, but as a whole, the trend of waiting for consumers continues.

Also, there is no significant change in the supply and demand balance of condominiums and offices.
As a feeling while doing business, really interest-free and unsecured loans such as the COVID-19 Special Loan have been implemented, and the accommodative monetary policy implemented by the central banks of each country (especially the United States) has led to the stock market, gold market, and virtual currency market. There is a tendency that a large amount of funds are flowing in and pushing up asset prices.

Regarding real estate, although there is some impact on real estate where hotels and restaurants are located, there are some housing-related real estate prices that are rising.
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In Japan, the third wave of COVID-19 is rushing in, and the existence of more infectious mutants is suspected, leading to the issuance of a state of emergency again.

Such a forced stop of economic activity will, of course, have some impact on the economy and real estate prices, and in information exchange with financial institutions and data companies that handle bankruptcy information, next year (after April 2021) ), There is an opinion that a significant effect may begin to be seen.

Turning to the real estate market in the Kansai region, the development of urban infrastructure and the development of real estate responsible for urban functions will be promoted for the 2025 Osaka International Exposition (Expo), and the appeal of the international city “Osaka” will be disseminated. Therefore, the value of the real estate market is expected to increase.。

However, the plan for an integrated resort facility (IR) including a Casino that Osaka Prefecture is aiming to attract is being tossed due to COVID-19, and Mayor Ichiro Matsui said that the opening time was set to March 2027. It has announced that it will be postponed for about one to two years.

In addition, only one joint group operator of MGM Resorts International and ORIX Corporation has responded to the public offering of IR operators, and it is necessary to update the business plan after assessing the tourism demand of After COVID-19.

Due to the expectation of economic effects associated with infrastructure development such as construction in anticipation of the Expo and IR, the Namba area within walking distance to Dotonbori and Kujo, which was thought to be on the line between the city center and Maishima / Yumeshima, are temporarily closed, There was a big upward trend in prices, but no such movement is currently seen.

In addition, drug stores and home appliances / brand stores, which were considered to have a high rent burden, have been forced to close or relocate when there are no inbound customers.

Currently, the fields that are booming as real estate movements are logistics facilities due to the increase in online shopping, central office buildings for in-house use, profitable condominiums, and detached houses. At our company, many businesses are based on these demands.