Property valuation services in Japan - a step towards global real estate transparency
Posted by Pat Kitano at 9/4/2006 8:02 AM 
Categories: Technology, New Business Models, Realty Realities, Real Estate Economics, Cool Web Tools
Categories: Technology, New Business Models, Realty Realities, Real Estate Economics, Cool Web Tools
After my article about the opacity of Japanese land values last month, I was told about a property valuation service in Japan reported by Fidelity National Information Services ("FNIS"). Japan headquartered New City Corporation, partnered with FNIS to develop ValueSure, an online tool customized to Japanese valuation standards that seems to have a look and feel of a mapping / comp tool like, say, Redfin's. New City claims the valuation tool, initially for use by loan professionals, is a first in Japan and intimates it will launch a consumer facing tool in the future.
Before seeing this article, I wondered how difficult it was to retrofit market data in other countries to existing online tools and whether a lot of cooperation between the public and private sectors would be required. The appearance of ValueSure confirmed that these online tools can be built in other countries. What makes ValueSure striking is its implications for more global transparency of real estate properties. These online tools not only facilitate transactions at a local level, but also begin to open up the world to cross border investment activity. This is a point not lost on the growing legions of real estate investors here in the US who are now being touted properties all over the world (see article on "armchair" real estate investments). As I pointed out earlier, Japanese consumers are shy of real estate investment due to the implosion in the 1990's. Will the impending transparancy of the Japanese market offered by services like ValueSure create momentum for renewed investment activity?
Long term, I see Zillow, FNIS and other real estate technology platforms have a potentially grand opportunity to develop their applications overseas and analyze real estate data as Zillow has done here locally on a global scale.
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Japan Zillow online valuation real estate investment
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