 Obsolete housing equipment, weak renovation, and rapid depreciation of Japanese condominiumsMasatomo Suzuki and Chihiro Shimizu Journal of the Japanese and International Economies, 2024, vol. 71, issue C Abstract: Employing a novel dataset on Tokyo condominium resales with details regarding their equipment and renovation status, this study provides a background for the rapid depreciation of Japanese condominiums, particularly due to obsolete housing equipment and weak renovation. Condominiums over the age of 20 years tend to lack contemporary equipment and exhibit severe economic obsolescence. This is measured as a greater rate of price decline caused by the lack of contemporary equipment for old condominiums than new condominiums. While intensive renovation can slow down depreciation by adding contemporary equipment to old condominiums, only around half of such condominiums undergo intensive renovation. These trends are consistent across the Tokyo metropolitan area. The results imply the potential to shift to a society where properties can attain longer economic lives through appropriate renovations and contemporary housing equipment is provided through frequent new constructions, as often seen in Asian countries. Keywords: Technological change; Housing equipment; Economic depreciation; Renovation; Housing market (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:71:y:2024:i:c:s0889158324000029 DOI: 10.1016/j.jjie.2024.101306 Access Statistics for this article Journal of the Japanese and International Economies is currently edited by Takeo Hoshi More articles in Journal of the Japanese and International Economies from Elsevier |
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