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2022 Ranking of Desired Streets and the Influence of COVID
2022/2/15
Market Forecast Column
LIFULL, a real estate information service, has announced “Desired Streets Ranking” based on the results of actual sought-after streets and stations.
According to the ranking, concerning streets where people want to rent, those with terminal characteristics in suburban or semi-suburban have surged to the top. In contrast, streets in central Tokyo or nearby areas have become sluggish. On the other hand, regarding streets where people want to buy, while demand for suburbs remains strong, there is a resurgence of interest in central areas driven by convenience. Thus, the ranking indicates a growing polarization.
Ranking of Streets People Want to Rent
Due to the Prolonged Impact of the COVID-19 Pandemic, Rental Users’ Suburban Preferences Are Not Temporary
Suburban or semi-suburban areas such as Hon-Atsugi, which has been ranked first for two consecutive years, Omiya (2nd), Kashiwa (3rd), and Hachioji (4th) are ranking high due to their direct access to central areas and bustling areas near stations.
The background of suburbanization in desired living areas has been influenced by the prolonged pandemic. The rise in remote work and online classes, as well as the decrease in salaries offered by private companies, may lead to increased concerns about the future. As a result, cases of people seeking to reduce living costs may increase.
Meanwhile, the prolonged pandemic has generated new needs for housing search areas.
Stations such as Kawasaki and Ogikubo in nearby suburban areas have maintained their previous rankings, unlike other stations near central Tokyo or nearby suburban areas.
This suggests a need for what could be termed as an intermediate layer. This layer prioritizes the convenience of access to central areas while maintaining an awareness of the suburbs, leading to the formation of the preferred areas.
Ranking of Streets People Want to Buy
Buyers’ Focus on Housing Searches in the Post-COVID Era
Interest in suburban areas from last year has changed significantly. Streets with high asset values and located in central Tokyo have returned to prominence. Areas around Kachidoki, which has been ranked first for three consecutive years, are undergoing a large-scale project on the former site of the Olympic Village. These areas have been attracting significant attention. Even with the ongoing COVID, buyers’ needs for convenience and asset value remain unchanged. It is clear that their focus is on the center of Tokyo and the surrounding area.
On the other hand, the progress of remote work and soaring property prices have led to a rise in demand for nearby suburban areas such as Hiratsuka and Chiba. Thus, it can be concluded that the demand for suburban areas remains robust.
A common feature among streets that have rapidly ascended in the ranking is the presence of vibrant shopping streets. Due to the reduced outings and increased time spent in nearby areas during COVID, vibrant streets have become a key factor in housing searches.
Additionally, since prices of new condominiums in Tokyo are roaring, interest in purchasing second-hand condos is increasing. In this situation, Yokohama has risen rapidly from last year’s 23 to this year’s 3rd due to the proximity of second-hand condos to stations and streets,