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Using property-level inquiry volume to quantify demand–supply balance for existing houses: the case of the resale condominium market in Tokyo

Masatomo Suzuki (Center for the Promotion of Social Data Science Education and Research, Hitotsubashi University, Tokyo, Japan)
Chihiro Shimizu (Center for the Promotion of Social Data Science Education and Research, Hitotsubashi University, Tokyo, Japan)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 11 May 2022

Issue publication date: 14 August 2023

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Abstract

Purpose

Houses are durable, so an imbalance between demand and supply occurs after time has passed since initial construction. The purpose of this study is to quantify the extent of this imbalance for existing houses, focusing on the heterogeneity across property segments.

Design/methodology/approach

This study uses a unique data set on the “inquiry volume” that each property received from an online real estate portal to measure the volume of demand in relation to supply. Simple regressions are conducted in the resale condominium market across the Tokyo metropolitan area.

Findings

The inquiry volume successfully tracked a recent expected trend in which demand relative to supply is stronger for condominiums in reasonably priced areas, condominiums in convenient, accessible locations, condominiums built within the last 20 years and compact and spacious units. This study also confirms that these trends cannot be captured through heterogeneity in price levels, which has been widely used in previous studies on measuring housing preferences.

Practical implications

As an indicator of conditions in the housing market, the property-level inquiry volume has strong potential to provide useful information for supply strategies and for the sustainable use of existing housing stocks.

Originality/value

The originality of this paper is the use of information on the buyer side, which is typically unobservable.

Keywords

Acknowledgements

The authors would like to thank Richard Reed (Editor), two anonymous referees, Hiroko Saito and members of the Recruit Sumai Company Ltd. for their helpful comments and suggestions and Recruit Sumai Company Ltd. for providing the data. This work gratefully acknowledges the support received from JSPS KAKENHI Grant Numbers 20K14896, 20H00082 and 17H00988.

Conflict of interest: The authors have no conflicts of interest to declare.

Citation

Suzuki, M. and Shimizu, C. (2023), "Using property-level inquiry volume to quantify demand–supply balance for existing houses: the case of the resale condominium market in Tokyo", International Journal of Housing Markets and Analysis, Vol. 16 No. 4, pp. 736-755. https://doi.org/10.1108/IJHMA-01-2022-0018

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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