An increasing number of people in Japan think that real estate investment is not a better option than bank savings or stock investment, according to a government white paper on land for fiscal 2020 released Tuesday.
According to a survey of 3,000 people conducted by the land ministry in fiscal 2019, the proportion of people who did not think that real estate was an advantageous investment asset rose to a record 45.3 percent, up 5.9 percentage points from the previous year.
“The increasing tendency of people to feel that maintaining and managing real estate is a burden may be one factor,” a ministry representative said, noting that the decreasing population has led to an increase in cases where people inherit land from relatives living far away.
The ministry survey, conducted annually since fiscal 1993, asked in fiscal 2019 whether respondents thought real estate was a better asset than savings or stocks. Those who said real estate was advantageous totaled only 27.1 percent.
The survey also asked for the first time whether people wanted to own land, and showed that 32.5 percent of respondents said they did not want to do so.
The costs and labor associated with land ownership was the most common reason for the response, given by 30.0 percent. The lack of ways to use land was the second most common response, at 25.1 percent, followed by the costs for obtaining land, at 16.3 percent.