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Real Estate Owners Face Uncertainty Amid Rising Inflation

In the backdrop of an uncertain economy in 2026, a new survey conducted by Central Property Co. has unveiled alarming insights about the emotional and financial struggles faced by real estate owners across Japan. The survey involved 137 property owners and focused on concerns related to asset values amidst inflation and the ongoing shifts in market conditions.

Key Findings of the Survey

Prevalence of Anxiety Among Property Owners

The results indicate that 85.4% of real estate owners express significant anxiety regarding their property's future value and profitability. Among these respondents, about 37.2% admitted to being able to maintain their current situation, yet they remain worried about the potential of property value depreciation in the future. Further, 13.9% reported dissatisfaction due to declining profitability caused by factors such as property age and vacancies. Alarmingly, 34.3% of owners are in a state where their properties do not generate income, pushing them into a situation where they must cover additional expenses, such as taxes.

Concerns About Increasing Costs

The survey also sheds light on the primary concern among property owners: the rising costs associated with property maintenance and repairs. 43.1% of the participants identified the increasing expenses for building repairs and maintenance as their biggest worry, reflecting the pressures of inflation and soaring construction costs. This sentiment underscores the potential impact on owners' financial stability and their ability to hold onto their properties amidst the rising costs of upkeep.

Barriers to Asset Reallocation

Among the many challenges property owners face, the most significant barrier to reallocating assets is the apprehension of incurring further debt. A staggering 30.6% of respondents expressed that they do not want to take on the risk of new loans to invest further in the real estate sector. This reluctance is compounded by psychological resistance to letting go of inherited properties, which many feel attached to, and the uncertainty surrounding whether their current real estate can fetch their hoped-for price.

Desired Solutions from Real Estate Companies

In light of these pressing concerns, property owners appear to be yearning for solutions that do not necessitate additional financial burdens. 40.9% of owners want proposals from real estate companies that can be completed within the limits of their existing capitol, emphasizing the desire for plans that do not result in new borrowings. Additionally, there is an interest in understanding estate tax implications better, with 29.9% of owners interested in long-term business plans that illustrate potential tax savings.

Commentary from CEO Masashi Matsubara

According to Masashi Matsubara, CEO of Central Property, the findings underscore a critical situation where many property owners find themselves in a dichotomy between the escalating risks of maintaining their current assets and the hesitation of pursuing new investments due to the psychological barriers of taking on debt.

He explained that properties like shared ownership, leasehold rights, and ageing apartments often fetch lower prices in the market, leading owners to reluctantly forgo selling, believing that they won't be able to use the proceeds for further investments effectively. However, he emphasizes that with appropriate knowledge and strategies, such owners can achieve high-value sales without incurring new debts, enabling them to reinvest their sales proceeds into high-quality income-producing properties.

Central Property prides itself on offering a comprehensive support system, from high-value sales to tax planning, all aimed at guiding owners through the complexities of their investments without further financial strain. They invite property owners who feel anxious about their current situations to utilize their free valuation and asset simulation services.

Summary of the Survey

• - Survey Name: Investigation into the Re-evaluation and Reallocation of Property Assets in Light of Inflation and Market Changes
• - Conducted Period: August 2026
• - Participants: Property owners aged 40 and above across Japan
• - Total Responses: 137 individuals
• - Methodology: Online questionnaire
• - Conducted by: Central Property Co.

Through these insights, real estate stakeholders are encouraged to pay attention to the evolving landscape and the financial mindset of property owners. The findings serve as a crucial reminder of the inherent challenges that accompany the ownership of real estate during turbulent economic times.