While the news that the number of newborns in Japan has fallen below 700,000 is still fresh, I came across a press release from an organization stating that the number of people with dementia will exceed 7 million by 2025. That means there will be ten dementia patients for every newborn. Although the source of this figure appears to be from a 2020 Financial Services Agency website—making it somewhat outdated—it nonetheless reinforces the reality that Japan is a super-aged society, and it made me realize that the way we manage assets as a society is likely to undergo significant change.

Among all assets, real estate will be particularly affected. When someone develops dementia, it becomes difficult to confirm their intentions, and even if there is a need to sell or rent property, the necessary procedures can’t proceed. As a result, real estate left behind before inheritance becomes “frozen assets”—unable to be used or sold—a situation which could quickly spread nationwide.

Given this backdrop, it’s not hard to imagine that in the future, real estate that is “manageable,” “easy to inherit,” or “easy to let go of” will be increasingly valued. In fact, many properties—such as farmland, forests, “countryside properties,” or single-family homes in aging new towns—are becoming part of a growing class of “negative assets.” In contrast, condominiums (apartment units for sale) are drawing renewed attention. In particular, urban condominiums are highly advantageous as future assets in the following three ways:

1. Significantly Less Burden in Asset Management

Condominiums have a management association responsible for building maintenance, repairs, and shared facilities. Compared to detached houses, which require the owner to handle maintenance and neighbor relations, condominiums reduce future burdens and risks of trouble—especially important as dementia and aging progress. They also offer peace of mind for family members who may need to step in.

2. Established Market Makes Resale After Inheritance Easier

Condominiums generally have standardized pricing based on location and maintenance conditions, making them easier to sell. Detached houses often vary widely in value due to age, location, and building condition, leading heirs to struggle with questions like “Why won’t it sell?” or “What’s it worth?” In contrast, condominium prices are more predictable and attract potential buyers more easily.

3. Well-Suited for Tools Like Family Trusts

When using tools like family trusts to transfer assets to the next generation, condominiums—thanks to their standardized management and operation—are easy to handle. They can be rented out for regular income or sold to fund a new residence. If relatively new and well-maintained, they can be liquidated smoothly.

The coming years in Japan, the risk of asset freeze among the elderly will become more prominent. It may be more reassuring to have options available “just in case” rather than to focus solely on properties meant to be lived in for life. The mindset of “buy while you can still sell” or “put things in order while you still have capacity” will likely become the norm. In this environment, condominiums will stand out more and more—not just for their comfort as homes, but also for their superiority as assets that won’t burden your family in the future.

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