Quote:
Originally Posted by Nite
Japanese cities are still growing relatively fast especially Tokyo
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Only 7 prefectures out of 47 have seen population growth in the last 10 years: 4 are in the Tokyo area, one is suburban Osaka (Shiga Prefecture, and it grew by a whopping 0.2%), one is Fukuoka (+0.6%) and the other is Okinawa. Tokyo's "relatively fast" growth is 2% over ten years.
Very few cities in Japan are growing, and those that are growing do so at the cost of other cities and prefectures. Depopulation on the Sea of Japan side of the country has lead to situations where municipalities regularly give land away for free - you just need to agree to pay the taxes.
Guys, I know free market evangelists hold Japan up as an example of what happens when you let housing get built with little regulation. But ask yourselves this, would you want to live in a housing system in which:
- Only land can appreciates in value; houses do not. "Can" being the operative word here, as normal scarcity expectations don't apply to shrinking markets. Lots of land never appreciates.
- Houses are built with a ~30 year shelf-life. Culturally, almost no one who can afford to buy a SFH finds it acceptable to buy a used one. You build a new house on purchased land. The omnipresent construction and real estate conglomerates
rrrreaaaallly push this narrative. The most common OOO creative I see running in Tokyo's transit ads is for new houses and new developments on the fringes of the metro out in Chiba or Saitama prefectures.
- Consequently to the above two points, if you buy land and build a house, you won't be able to recoup the costs of the actual house. Ever. That's $200,000 bare minimum in Tokyo that you will never see again.
Unless your land appreciated by more than the cost of the house. Which isn't going to happen outside of select areas in major cities, Tokyo having the most of these.
The system here works because it robs Peter to pay Paul. The Japanese countryside can only be emptied out so much before there's no longer a source for Tokyo's growth. And to be clear: this is the
only source of growth Tokyo gets. We have more deaths than births in Japan, we've been well below replacement level birthrates for decades, and we will
never let even medium-scale immigration happen, let alone at the volumes needed to offset our inverted demo pyramid time-bomb.