Real Estate Market Insights: User Sentiment on Purchasing and Renting

In a recently conducted survey by Ielove GROUP, a company specializing in DX support for the real estate sector, the shifting trends within the real estate market have been highlighted. The survey included responses from 182 real estate companies and 883 end-users, providing valuable insights into their concerns and expectations as we approach 2025.

Survey Background

The real estate market is undergoing significant changes due to monetary policy shifts by the Bank of Japan, rising land prices nationwide, and modifications to the housing loan tax deduction system. Notably, properties not meeting energy-saving standards will no longer qualify for the tax benefits, influencing the options available to end-users and the suggestions made by real estate firms. Given these developments, the survey aimed to capture the perspectives of real estate companies and end-users regarding the market outlook into 2025.

Survey Summary

Uncertainty Surrounding Home Purchases

The survey found that only 28% of real estate firms believe now is the right time to purchase a home, while a staggering 77.1% of end-users expressed worries about the impact of rising interest rates on their purchasing decisions. Among the reasons cited by companies who felt it was a good time to buy, 66.7% anticipated future price increases, while 49% noted that interest rates remain relatively low.

Conversely, when end-users were asked about their purchasing sentiments, only 5.7% felt it was an appropriate time to buy, with a significant number indicating they would purchase only under certain conditions. This cautious approach was further echoed by 80.6% of respondents acknowledging that rising loan interest rates greatly or moderately influence their willingness to buy.

Rental Market Perspectives

Similarly, the rental market perspective remains uncertain. Only about 30.7% of real estate companies considered it a good time to rent, while again, a large percentage of firms opted for a neutral stance. Among the reasons cited for considering it a good rental time, 64.3% mentioned moderate increases in rental prices, while 30.4% noted a rise in zero-deposit properties.

End-users prioritized proximity to transportation (60.9%), security features (48.4%), and indoor comfort (46.7%) when selecting rental properties. Additionally, considerations of rent affordability and energy efficiency were increasingly significant in decision-making.

Focus on Customer Engagement Strategies

Looking ahead to late 2025, over 30% of real estate firms will concentrate on enhancing customer engagement and reviewing strategies related to customer management and follow-ups. In response to a question about whether inquiries concerning buying and renting have increased, 42.3% of firms reported no changes, while only 31.3% noted an uptick in inquiries. This reflects a reluctance among end-users to make concrete moves given the current market volatility.

Real estate companies recognize the importance of actively enhancing customer contact and implementing strategies that foster greater engagement, especially as customer inquiries remain low. This includes improving online presence through websites and social media, with firms increasingly focusing on adapting their propositions based on the evolving needs of clients.

Conclusion

The outcomes of the survey indicate a rising uncertainty among both real estate companies and end-users regarding the future of the market. With growing apprehensions over interest rate increases pushing end-users towards caution, it becomes essential for real estate businesses to proactively manage customer connections and refine their proposals throughout this volatile landscape. By offering timely information and tailored solutions, real estate firms can meet latent customer needs and drive successful transactions moving into 2025.

About Ielove GROUP

Founded in January 2008, Ielove GROUP operates on the mission of enabling secure housing choices for all. Their SaaS offerings are utilized by over 44,000 real estate firms nationwide, promoting digital transformation across the industry while providing extensive support in areas such as rent guarantees and rental management services.

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