There are several ways to research the selling market: checking comparable closed sales, comparing your property against active listings on property information sites, and checking posted land prices (kōji chika) and benchmark land prices (kijunchi ka) for the general price level in your area. Each source tells you something different, so combining them gives you a more accurate feel for the market.
- The basic approach to researching the selling market is to combine multiple sources — closed sales, active listings, and posted land prices.
- REINS closed-sale data is close to the actual transaction price, but since it isn't open to the public, you'll need a real estate company to check it for you.
- The prices listed on property information sites are asking prices, not closed-sale prices — an important distinction to keep in mind.
- Posted and benchmark land prices are indicators of land price levels — a separate measure from the price of a condo unit itself.
- Even within the same area and building age, prices vary with management condition, floor, and orientation, so treat market figures as a general guide.
Researching Through Closed Sales: REINS and Your Real Estate Company
REINS (Real Estate Information Network System) is a database for real estate companies, operated by the designated distribution organizations, that records actual closed sales. Members of the public can't access it directly, but a real estate company can look up comparable closed sales on your behalf. Because the data is close to the actual transaction price, it's one of the most useful sources for understanding the market.
Researching Through Active Listings: Property Information Sites
The prices on property information sites are the asking prices sellers have set — what they'd like to sell for — not the actual closed-sale price. Many properties are priced more ambitiously than the market would bear, so judging the market from asking prices alone can lead you to overestimate it. These sites are best used to compare several comparable properties and see the spread of prices.
Using Posted and Benchmark Land Prices to Gauge the Area
Posted land prices (kōji chika) — standard land prices published annually by the national government — and benchmark land prices (kijunchi ka), published by each prefecture, are indicators of land price levels by area. Posted land prices come out around March each year and benchmark land prices around September, so tracking them over time makes it easier to follow local land price trends. Because a condo's price also includes the building, you can't calculate a unit's price from the posted land price alone, but it's useful for gauging whether land prices in the area are trending up or down.
How Price Varies by Building Age, Floor Area, and Floor Level
Even within the same building, price varies with conditions like floor level, south-facing orientation, corner units, and whether the unit has been renovated. A building that's older but well managed, with reserve funds (shūzen tsumitatekin) being accumulated on a sound plan, can be valued higher than its age would suggest. Conversely, even a newer building can struggle to command a strong price if there are concerns about its management. When researching the market, it's important to compare cases with conditions close to your own.
How Market Research Relates to an Appraisal
The market information you gather is also useful when you request an appraisal from a real estate company. Having a rough sense of the market beforehand makes it easier to ask your representative about the reasoning behind their appraisal figure, and helps you compare appraisals from multiple companies on a level footing.
Things to Watch For When Researching the Market
Market information only reflects past transactions and the current state of listings — it can't predict future market shifts. Numbers can also vary between sources even for the same property type and area, so don't rely on a single source; combine multiple sources for an overall sense of the market. Taking one number at face value without checking can lead you astray when it comes to setting your actual asking price.
Frequently Asked Questions
Can I look up REINS closed-sale data myself?
REINS is a system for real estate companies, so members of the public can't access it directly. You'll need to ask a real estate company to check comparable closed sales for you.
Can I treat the prices on property information sites as the market rate?
The prices listed on these sites are asking prices, which differ from actual closed-sale prices. Since they're sometimes set higher than the market rate, it's best to treat them as a reference point only.
Can I use the posted land price directly to calculate a condo's price?
The posted land price is an indicator of land price levels — a separate measure from the price of a condo unit, which also includes the building. Use it instead as a way to gauge land price trends in the area.
Summary
The basic approach to understanding the selling market is to combine multiple sources — REINS closed-sale data, asking prices on property information sites, and posted and benchmark land prices. Once you understand how each differs, compare cases with conditions close to your own to build a well-grounded sense of the market.