Cheaper than dirt
A few weeks ago we learned that a house we had been interested in was sold. We had first seen the house last fall and wrote about it here, and then did some research because the realtor who showed it to us couldn’t answer our questions about the structure and the land. Obviously, other people looking to buy were less apprehensive about the property. Another reason we hesitated for so long was the price. When we first inspected the house we thought ¥15 million was reasonable considering the size, the layout, and the unobstructed view to the south, but then we noticed that in the same general vicinity a developer was selling brand new houses of a comparable size for only ¥16 million, and some were even closer to the train station. Looking at these houses on the web we realized that the reason they were so cheap was because the developer had bought a tract of land in an undeveloped corner of town and just filled it with as many structures as it could. These were not houses ordered by people who first chose a plot and then a model from a list of designs to build on the plot. The developer divided up the tract and went ahead and constructed identical houses on all of the plots, with perhaps minor differences determined by light exposure or shape of the land. By doing it in a mass way, the developer could save money. Though we could tell by just looking at the photos on the web they were not for us, we also thought it would appeal to a lot of potential buyers simply because the houses were brand new, and thus it would be much more difficult for the realtor selling the house we’d been interested in to unload it, but we were wrong.
The existence of such new homes made ¥15 million seem like a lot for the house we had been interested in, so we did a search and found several developments in northern Chiba where brand new homes were being sold at prices below what we had come to think was the average for used homes. Two were in Shiroi on the Hokuso Line, each about 15-20 minutes from the nearest station. In one development they were going for as low as ¥13.7 million and the other as low as ¥14.8 million, which is dirt cheap considering that new homes in the same area with the same floor space and land area, and probably less in terms of fixtures and amenities, were likely going for ¥30-40 in the early 1990s. Of course, comparing anything real estate-wise to the late 80s/early 90s in Japan is a chump’s game, but it does provide a perspective that’s instructive when it comes to making priorities. Read More