Fukushima’s real estate market not expected to recover for at least 3 years

Fukushima Prefecture’s Real Estate Appraisal Association announced the results of their survey on the real estate market for Fukushima following the March 11 earthquake, tsunami and nuclear disaster.

On the buy side, the three different areas in Fukushima reported different results. In the Aizu area, the westernmost part of Fukushima, 47% reported the same level of interest as pre-earthquake. In the Nakadori area, the middle third of Fukushima and also where Fukushima City is located, 60% reported a drop in interest. While in the Hamadori area, the easternmost third of Fukushima, 50% of respondents reported an increase in interest.

On the leasing side, all three areas reported an increase in activity. This is influenced by the Prefecture’s leasing of residential areas for displaced residents.

As for how long the effects of the March 11 Tohoku disaster will have on the real estate market, the largest response from all three areas was that it was expected to continue for over 3 years. There is growing demand to lower asset and property acquisition taxes to stimulate the market in the short-term.

Source:
Jutaku-Shimpo-Sha, Inc. July 4, 2011.