Condominium Management Market in Japan: Key Research Findings 2016
Research Outline
- Research period: December 2015 to February 2016
- Research target: Companies in the business of condominium management
- Research methodologies: Face-to-face research by the expert researchers and literature research
What is the Condominium Management Market?
Condominiums in this research indicate those residential buildings consisted of each rooms owned by different owners, rather than a whole building owned by a single owner. The condominium management market in this research is composed of the following two markets: the condominium administration fees market and the condominium public-space repairing works market. The condominium administration fees market is calculated by totaling the management fees of the condominium. Size of the public-space repairing works market is calculated based on the amount needed for repair works of condominium public spaces.
Summary of Research Findings
- Condominium Administration Fees Market in 2015 Expected to Rise by 2.5% to 681.6 Billion Yen, Growth Slowed Down Due to Continuous Request for Reducing Administration Fees
Size of the domestic condominium administration fees market in 2015, based on the condominium administration fees, is likely to rise by 2.5% to attain 681.6 billion yen. The market growth is likely to slow down toward the future, because, in addition to number of newly-built condominiums decreasing, there have been ever-severe continuous requests for reducing the administration fees by the homeowners cooperatives backed by sufficient information on replacement of condominium administration service providers. In 2016 the market is expected to rise by 2.4% from preceding year to attain 697.8 billion yen, which is likly to grow by 2.0% to attain 711.5 billion yen by 2017, and 755.3 billion yen by 2020.
- Public-Space Repairing Works Market in 2015 Projected to Rise by 2.2% to Achieve 600.6 Billion Yen, With Increasing Number of Condominium Stocks Awaiting for Large-Scale Repairing Works
Size of the domestic condominium public-space reparing works market in 2015, based on the amount needed for repair works of condominium public spaces, is projected to increase by 2.2% to attain 600.6 billion yen. The consumption tax increase scheduled to take effect in 2017 is expected to drive another last minute surge in demand and also downturn effect from it, although such effect is regarded to be trifling. With growing number of condominium stocks awaiting for large-scale repaing works, the market is considered to be on the rise toward 2020. The market size is projected to expand by 8.0% fron the preceding year to attain 648.5 billion yen by 2016, which is likely to decline by 4.3% to 620.7 billion yen by 2017, and to expand to 678.8 billion yen by 2020.
- Mid-Size and Small Condominium Management Companies to be Integrated into Large Enterprises
Some of small or mid-size condominium management companies have become unable to cope with diversified and advanced needs of houseowner cooperatives. For such small or mid-size enterprises with limited room to create economy of scale or to improve business efficiency, it is difficult to absorb the cost-raising factors such as increasing labor cost and expanding eligibility for social insurance for workers. Therefore, the current status is considererd to result in further reorganization and integration of enterprises into large businesses.
- Figure 1-1: Transition and Forecast of Condominium Administration Fees Market Size
- Figure 2: Transition and Forecast of Condominium Public-Space Repairing Works Market Size
