With the year 2024 in the rearview, we would like to look back at some of the major real estate-related news from the past year.

Noto Peninsula Earthquake: Maximum Intensity of 7 Recorded (January 1)

Nankai Trough Earthquake Emergency Advisory (Mega-Quake Warning) Issued (August 8)

This year began with alarming news that shook households across Japan. The massive earthquake on January 1st is unforgettable, and nearly a year later, reports suggest that recovery efforts are still lagging. Another major earthquake-related news story was the August 8th “Megaquake Warning.” Many may recall the week-long advisory warning that a Nankai Trough Earthquake could occur at any moment. However, even with such warnings, many people were unsure how best to prepare.

Earthquakes such as the Great Hanshin-Awaji Earthquake and the Great East Japan Earthquake have claimed countless lives. This highlights the importance of earthquake-resistant construction, retrofitting older homes, and active fault surveys—factors that must be considered when purchasing real estate. Moving forward, even greater emphasis will likely be placed on earthquake resistance.

“744 Municipalities at Risk of Disappearing” – 40% of All Municipalities Identified by Population Strategy Council (April 24)

Last Year’s Births Hit Record Low of 750,000

Municipalities where the number of women in their 20s and 30s is projected to halve by 2050 are classified as “at risk of disappearing.” Alarmingly, about 40% of all municipalities fall into this category. What surprised industry experts was that these “at-risk” areas include not only rural depopulated regions but also suburban areas such as Gyoda City in Saitama Prefecture, Yachimata City in Chiba Prefecture, Kadoma City in Osaka Prefecture, and Yamato-Takada City in Nara Prefecture.

Similarly, the declining birthrate was another headline that couldn’t be ignored. However, just as the risk of disappearance varies by municipality, so does the birthrate. Some municipalities have managed to maintain high birthrates. When considering the resale value of a home, these statistics cannot be overlooked. Evaluating a municipality’s “future prospects” is an essential step.

Nikkei Stock Average Surpasses All-Time High from the Bubble Era (February 22)

Minimum Wage Raised by 50 Yen to a Nationwide Average of ¥1,054 Per Hour (July 24)

Bank of Japan Ends Negative Interest Rate Policy, Shifts Monetary Policy (March 19)

While much of the news this year focused on disasters and population decline, there were also some bright spots. The stock market surged, wages increased, and the lifting of the negative interest rate policy signaled a major shift in monetary policy. Many now anticipate continued inflation moving forward.

Yen Depreciation Accelerates: Hits 160 Yen per Dollar, a 34-Year Low (April 29)

Japan’s Nominal GDP for 2023 Falls to 4th Place Globally, Overtaken by Germany

Japan continues to face challenges in terms of global economic competitiveness. On the other hand, the weak yen has led to an increase in tourism and inbound demand. In real estate, the weaker yen has made it easier for overseas buyers to purchase well-maintained properties at affordable prices.

The number of foreign tourists visiting Japan is expected to grow further. In regions like Kansai, areas such as central Kyoto and Osaka, which are likely to benefit from inbound demand, are expected to thrive in the future.

2024: A Turning Point Year

The year 2024 marked the end of the COVID-19 pandemic and a shift from deflation to inflation. What kind of year will 2025 turn out to be? Only time will tell.

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