TOKYO: The protracted coronavirus crisis has changed the way people work and live, affecting the needs in the Japanese real estate market as a result.

Office vacancies in central Tokyo are increasing amid the spread of teleworking, while bigger housing in the suburbs is drawing attention as many people spend more time at home.

According to office broker Miki Shoji Co., the office vacancy rate in central Tokyo exceeded 5 pct for the first time in nearly six years in February, passing what the industry sees as the appropriate level.

Many in the industry play down the rise, saying that the rate had been too low. But the situation does not warrant optimism.

Electronics maker Fujitsu Ltd. aims to halve its total office floor space by the end of March 2023 to adapt to new ways of working, including teleworking.

Moves to reduce or relocate offices are expected to increase in earnest from now on, as many companies that have been taking a wait-and-see attitude are likely to start making decisions.

Sumitomo Mitsui Trust Research Institute Co. forecasts that the office vacancy rate in central Tokyo will rise to as high as 8 pct in 2025, aided by an increase in office supply.

The virus crisis has also brought about a change in housing demand.

According to a survey by Mitsui Fudosan Residential Co., about 20 pct of home buyers who recently concluded sales contracts said that the virus crisis has made them start considering home purchases.

Many respondents preferred spacious housing with many rooms, according to the company.

As it became less frequent for many workers to commute, more potential buyers “are beginning to consider the option of living in the suburbs,” a Mitsui Fudosan Residential official said.

Some people have moved to city centers to live closer to their workplaces while others are looking for places from which they can commute by bicycle, both in hopes of reducing the risk of catching the virus.

“Amid the virus crisis, the needs have become diverse,” said Junko Iwasaki of At Home Lab Co., which analyzes the real estate market. “Living in the suburbs is just one example.”