Market Overview

Based on property management fees, the condominium property management market size is estimated at 860.5 billion yen in 2024, marking a 2.3% year-on-year increase. According to an estimate by the Ministry of Land, Infrastructure, Transport and Tourism, the number of new condominium constructions is declining slightly. However, rising prices of newly built condominiums and labor costs are fueling the increase in property management fees, thereby stabilizing the growth of the condominium property management market.

Based on construction costs, the market for repairing common areas is expected to reach 935.5 billion yen in 2024, a significant 28.8% increase from the previous year. This market fluctuates annually due to the planned maintenance cycles of condominiums. The market expanded significantly in 2024 due to the second major repair cycle for a substantial number of condominiums built around 2000, and the rising construction unit costs, driven by higher prices for construction materials and labor.

Noteworthy Topics

Conventional Property Management Evolved to Comprehensive Solution Business Due to Improved Peripheral and Derived Services

In response to the diverse needs and challenges of condominium residents, property management companies are expanding their services. Specifically, in addition to their existing packages of solutions for private areas, which include solutions for water-related problems and in-room emergencies, they now offer parking lot subleases, property purchase and resale services, and car and bicycle sharing services.
They are also developing and providing ICT-based management services. These services digitize contracts and other documents, utilize unmanned reception terminals, and deploy AI-powered response services.

Consequently, these companies are accelerating their shift from mere property management to providing comprehensive living solutions based on their expertise and the resources from affiliated companies. 

Future Outlook

From a mid-to-long-term perspective, the condominium property management market, comprising property management and common area repair work, is expected to grow.

The market size is projected to reach 879.6 billion yen in 2025, representing a 2.2% increase from the previous year. It is forecast to expand to ¥978.7 billion by 2030, a 13.7% increase from 2024. Property management fees are likely to continue rising, due to persistently high new condominium prices and rising expenses, including labor costs. Despite the anticipated decline in the supply of new condominium units, the overall condominium stock is expected to rise as long as new buildings continue to be constructed. Consequently, the condominium property management market is projected to grow steadily.
The common area repair market is forecast to reach 1.0038 trillion yen in 2025, a 7.3% year-on-year increase and to rise further to 1.0539 trillion yen by 2030, a 12.7% increase from 2024. This robust growth is driven by an increasing number of small-scale repair projects resulting from aging and deterioration, a growing stock of older condominiums, and more repair work aimed at extending the lifespan of buildings.

Research Outline