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Rising Demand against Declining Listings in Real Estate

In an era of changing market dynamics, Estate Technologies, based in Shibuya, Tokyo, has conducted an in-depth analysis of the real estate sector, revealing a paradoxical situation for 2024. While the transaction rate is projected to increase by 20% compared to last year, the number of available property listings is anticipated to decrease by 15%. This article explores the underlying trends and introduces the company's new strategy to tackle the challenge of diminishing property supply.

Overview of Market Trends

As illustrated in the graphs derived from the Reins Data Report, the number of transactions in the Tokyo metropolitan area is expected to show a gradual increase starting from the summer of 2024, reaching a 30% rise by March 2025. This indicates a robust buying intent within the market. Conversely, the total number of property listings is plummeting, having sharply declined after summer 2024 and hovering around 200,000 listings by the end of the year. By March 2025, recovery is still lagging, highlighting significant supply shortages.

The mismatch between the heightened desire to buy and the limited availability is intensifying competition among real estate companies, creating new challenges in property acquisition.

Analyzing the Property Supply Crisis

The primary reasons for this observed surge in transaction rates can be attributed to a significant shift in interest rates, which have historically been low. There is also a growing desire to purchase homes driven predominantly by redevelopment and infrastructure enhancements in urban Tokyo. However, the decline in property listings is influenced by multiple conflicting factors.

The decreasing demand for new homes—partly a result of an aging population and declining birth rates—is coupled with rising construction costs, which are contributing to a stagnation in new property availability. Furthermore, consumer preferences lean heavily toward newly built homes, creating hesitance towards pre-owned properties due to concerns over quality and performance.

Estate Technologies’ Solution: The New Property Acquisition Support List

To navigate this complex landscape, Estate Technologies is launching the Property Acquisition Support List, which leverages extensive data analytics. This innovative service will analyze nationwide real estate data daily, extracting a diverse range of properties suitable for renovation and resale based on the clients' specific needs.

With the capability to identify owner information, the service not only assists in identifying target audiences but also streamlines the approach process. This service, while primarily aimed at property resellers and agents, offers several key advantages:

• - Proactive Targeting: Gain early access to properties likely to be considered for sale, allowing for faster engagement compared to competitors.
• - Efficient Owner Identification: By merging property information with registries, agents can quickly ascertain who to contact, enhancing overall efficiency.
• - Reduced Workload: Diminish the strain on sales teams by simplifying site verification and information gathering, thus maximizing productive time.
• - Flexible Outsourcing Options: Suggestions for outsourcing certain processes, such as owner identification, improve operational adaptability.
• - Unique Acquisition Pathways: Establish independent sourcing avenues beyond reliance on existing portal listings.

This approach not only enhances operational efficiency but broadens the strategic scope for property acquisitions.

Service Details

The Property Acquisition Support List offers coverage across nationwide markets and caters to various types of properties, including full buildings and apartment units. Customization options will be available based on required property types, listing update frequency, and preferred locations. For further inquiries, visit our service page.

About Estate Technologies

Founded in March 2019, Estate Technologies aims to revolutionize the real estate market by harnessing the power of AI. Our mission is to create a transparent transactional environment for all stakeholders in real estate, establishing a new norm in property dealings. By offering state-of-the-art accuracy in property valuation through AI, we aspire to combat labor shortages and inefficiencies in the industry. Our newly launched acquisition support service aims to elucidate hidden selling interests in the market, thereby optimizing sales efforts and expanding business opportunities. We intend to extend the delivery of accurate information across regions, contributing to revitalizing local real estate markets and, ultimately, regional revitalization.