Market Overview

The number of secondhand homes purchased for resale after renovations or remodeling continues to increase year after year. Based on completed transactions, the existing home buying and reselling market (including both detached houses and condominiums purchased and resold) is estimated at 52,800 units in 2024, a 13.3% increase from the previous year.

The primary reason for this growth is the increased demand for secondhand homes. Soaring construction costs have made newly built homes expensive, which led consumers to seek relatively inexpensive existing homes. These resold homes are gaining popularity, since many of them have been refurbished or fully remodeled as if they were newly built.

Demand for these existing homes for speculative purposes are robust, whether they are single rooms, whole buildings, or vacant detached homes. More individual and corporate investors are interested in these assets due to their availability as an alternative to financial investments, such as stocks and securities, due to their higher interest rates than saving accounts and their ability to generate stable rental income and meet satisfactory asset-building purposes.

Noteworthy Topics

Businesses Buying and Reselling Existing Homes Maintain Favorable Performance

Major businesses that buy and resell existing homes have thrived in recent years.
This is primarily due to an increase in the number of properties for sale, driven by high demand for existing homes and the strong performance of expensive properties in urban areas. Additionally, efforts by these businesses to increase gross profits have been successful.

This prosperity is expected to continue this year as robust demand for secondhand homes increases the number of properties, including expensive ones, as well as property prices up to the asking price.

Future Outlook

Based on completed transactions, the existing home buying and reselling market (including detached houses and condominiums) is forecast to grow by 18.8% year over year, reaching 62,700 units in 2025. The market is expected to continue growing, reaching 75,600 units by 2030, marking a 43.2% increase from 2024.

Anticipating rising interest rates, mortgage interest rates will likely rise moderately under the assumption of low interest rates. Favorable external environments include continuous tax incentives for buying homes and relatively favorable conditions for obtaining residences.

The market is expected to experience favorable conditions, as there is robust demand for homes that have been bought and remodeled for resale because of their "as-new" quality, while new home prices remain high. Additionally, the number of existing homes requiring renovations and remodeling increases over time. Naturally, the supply of existing homes to be bought and resold is growing, which is another reason for market expansion.

Research Outline