Demand–Supply Relationship in the Resale Housing Market in the Suburbs of Tokyo

Vacant houses are currently being promoted for use in the resale housing market, and the purchase of resale houses has become an important option in society. This chapter investigates the demand–supply relationship in the resale housing market on the outskirts of the Tokyo metropolitan area. Focusing on the two established market-clearing factors: “price” and “time required to sell a property,” we investigated the manner in which potentially disadvantageous properties–in terms of building and locational characteristics–are sold in the market. In suburbs less than 30 km from central Tokyo, we show that such properties tend to be sold quickly or fetch high prices, suggesting a strong demand for resale houses for young households. In addition, in the outer suburbs (40 km or farther away from central Tokyo), potentially disadvantageous properties required longer time to sell or fetch low prices. Moreover, certain owners were found attempting to dispose their properties quickly at a low price, suggesting that they consider it costly to maintain their unnecessary properties.