Japan's abandoned houses wipe $25bn off nearby property value

Safety concerns lead to more unsold homes, exacerbating the problem

20240617N abandoned Japan

Japan's abandoned house crisis is fueling a vicious cycle, with prospective homeowners being put off from buying nearby property due to concerns about pests, overgrowth and security. (Photo by Nikkei)

DAISUKE HORI, Nikkei staff writer

TOKYO -- Long-abandoned homes in Japan are bringing down the values of surrounding properties, with losses reaching 3.9 trillion yen ($24.7 billion) over the five years through 2023, new calculations show.

The large sum underscores the scale of a problem that is fueling a vicious cycle of plummeting prices and more unsold properties.

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