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The Future of the Housing Business
Prescriptions for real estate companies during the housing transformation era
With advances in technology and the impact of the COVID-19 pandemic, a “new normal” took hold, so that the nature of residences itself is in transition.A particular problem today in such an environment is inadequate management of aging condominiums. To solve this problem, we will consider what kind of mechanism needs to be built .
For a long period after the end of the war, Japanese governments strived to increase the housing supply and raise its quality. After Japan’s first condominium was built in 1956, for example, large numbers of units were supplied through successive condominium development booms. This changed when the population started declining in the 2000s, in light of which the policy switched toward making use of existing housing stock.
Then with advances in technology and the impact of the COVID-19 pandemic, a “new normal” took hold, so that the nature of residences itself is in transition. For one thing, with more people working from home, residences are coming to acquire new functions for teleworking. Moreover, searching for housing is becoming more convenient, as regardless of the rental contract term, the procedures from looking for a property to moving in and out can be performed all on a single smartphone. With the appearance of such services, along with the lowering of barriers for switching dwellings, it can no longer be assumed that a residence is for long-term occupancy.
A particular problem today in this housing environment is inadequate management of aging condominiums. One factor behind this lack of management is that owners or those who inherit a property do not feel the value of a used condominium that has been left vacant and fail to sell or lease it to others, or do not participate in the consensus-forming for repair or rebuilding of a condominium. While the government has tried to address such issues by deregulation, guidance and other measures, the long-standing belief of Japanese in newly built residences makes this problem difficult to solve.
To prevent inadequate management of aging condominiums in the future, it will be necessary not only to devise new ways of condominium management drawing on new technology, but also to create means for maintaining and improving the value and brand image of used condominiums on the housing market and for promoting sales. Key players in devising such means are developers and management companies.
With a view to the future, here we will look at the kinds of policies demanded, from the standpoints of selling and management as well as area management, for realizing condominiums with high economic value that will be the choice of consumers.
Table of contents
- Changes in the Condominium Industry and Future Outlook
- Area Management and Digitalization
- Functions Demanded of Future Condominiums
- Initiatives Demanded in Future Condominium Management
- Initiatives Seeking Maximization of Group Earnings