Condominium Building Regeneration: Smoother Reconstruction Process Needs To Be Promoted

Editorial

14:59 JST, May 31, 2025

The challenge of regenerating aging condominium buildings is becoming increasingly serious. Obtaining agreements smoothly among residents to ensure good living environments and preventing building collapses in the event of disasters must be facilitated.

The Building Unit Ownership Law and other related legislation have been revised, focusing on relaxing the rules for rebuilding condominium buildings in which each unit is sold and owned separately. The revisions will come into effect in April 2026.

Currently, to rebuild a condominium building, a resolution must be passed at the management association by at least four-fifths of the owners. Under the revision, this threshold will be lowered to three-quarters in certain cases, such as if the building is not sufficiently earthquake-resistant.

Additionally, the requirement for unanimous consent among the owners for demolition, sale or renovation has been relaxed to at least four-fifths approval.

At the end of 2023, there were 1.37 million condominium units built at least 40 years ago, and this figure is projected to increase to 4.64 million by the end of 2043. Despite the progression in the degeneration of condominiums, reconstruction is moving slowly due to difficulties in reaching agreements among owners.

However, leaving condominium buildings to degenerate poses issues such as the deterioration of living environments and the increased risks of their collapse in disasters. Condominium buildings will eventually reach the end of their lifespan. It is understandable that the related laws were revised to deal with the issue of aging.

However, it is essential to carefully facilitate agreements among residents.

In buildings constructed in or before 1984, about 56% of current heads of households are at least 70 years old. Many elderly residents will likely prefer to continue living in their homes for as long as possible through repairs rather than rebuilding.

Recently, there have been cases in which private organizations such as nonprofits have facilitated communication between unit owners to understand their intentions and reach agreements, thereby aiding the progress toward reconstruction. The revised laws also stipulate the establishment of a registration system for such private organizations. Making use of such NPOs is to be encouraged.

The average cost borne by property owners for the rebuilding of condominiums reportedly exceeded ¥19 million between 2017 and 2021. In contrast, renovations that retain major structural components are significantly less costly than completely rebuilding the structure.

Whether rebuilding is preferable or renovation is sufficient, it is important to identify regeneration strategies that residents can accept.

As of the end of 2023, there were about 7.04 million condominium units, housing about 15 million people, or one-eighth of the population. The revised laws place significant restrictions on property rights. It is also important that details of the revision will be well publicized.

(From The Yomiuri Shimbun, May 31, 2025)