Apparently, in Japan they view housing as more of a 'consumption good' than we do in the US, and that has some benefits in terms of being more amenable to building enough and being less NIMBY about things.
In support of this is China, where there are similar cultural views about “used” homes being undesirable. Yet (to this point) prices have appreciated and they have used them as investment vehicles.
To put it another way, would Japanese homes really depreciate with rapid population and economic growth? There is just no way.
Point being maybe its demographics and regulation, with a cultural attitude that jives with it and even explains the regulation to demolish, but not attitude being operative.