The Land Without Appreciation: Investing in Japan

[Shane Pearlman]

"In most countries, houses get more valuable over time. In Japan, a new buyer will often bulldoze the home. ... There is virtually no market for pre-owned homes in Japan, and 60 percent of all homes were built after 1980."

I just finished re-listening to a phenomenal podcast about the consumer real estate market in japan: http://freakonomics.com/2014/02/27/why-are-japanes... They explore a wide variety of reasons behind the apparent lack of appreciation of a single family homes value over time. Now, as far as I can tell, that doesn't mean that LAND doesn't gain value, just that the building hasn't.

What I find myself wondering is if this is true for multi-family rentals or commercial / retail or if those markets operate on an entirely different set of economic drivers closer to what I am familiar with? Do rentals appreciate in Japan?

-S