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New Evaluation System for Apartment Management

The Japan Apartment Management Association, located in Minato, Tokyo, recently announced that it has begun publishing the results of its Apartment Management Appropriate Evaluation System on the SUUMO Property Library, operated by Recruit Co., Ltd. This initiative aims to increase transparency between prospective buyers and the management quality of apartments, enhancing the entire real estate market.

Key Features of the Evaluation System

Visualization of Management Status for Buyers

Traditionally, potential buyers could only check the management evaluations right before signing a contract. With this new system, property management evaluations are available during the early stages of the decision-making process. This initiative offers prospective buyers a comprehensive understanding of each property's management state before finalizing their decisions.

Simplified Criteria for Easier Understanding

Utilizing a nationwide standard rating system, the management quality is assessed by qualified experts according to six grades using a star rating system (★). This simplified way of presenting information allows buyers, regardless of their prior knowledge of property management, to judge the management quality at a glance.

Enhancing Market Value with Proper Management

The initiative promotes a fair evaluation of apartments that are managed appropriately, thereby positively impacting the market value of these properties. By making management conditions openly available, it contributes to improved transaction prices and market transparency.

Premium Pricing for Well-Managed Properties

Recent studies, including a report presented at a public symposium by Yokohama City University, have highlighted that properties rated with high management quality tend to command higher prices in the market. For instance, those designated with a comprehensive ★5 evaluation have demonstrated an approximate 11% price premium over their counterparts without such evaluations. This data underscores the importance of proper management in reflecting market value.

Relationship Between Management Evaluation and Pricing

According to the findings, properties scoring ★3 or higher on the Apartment Management Appropriate Evaluation register are priced significantly higher than those without an evaluation. Moreover, properties rated ★5 showed a confirmed 11% price premium based on comparative analysis under certain conditions. This clear correlation emphasizes the impact of an effective management evaluation system on real estate value.

About the Apartment Management Appropriate Evaluation System

The Apartment Management Appropriate Evaluation System was launched in April 2022 by the Japan Apartment Management Association as a nationwide common standard for evaluating apartment management. Certified management professionals or apartment management advisers, who have successfully completed designated training, are tasked with evaluating the management state of each apartment. As interest in management conditions continues to grow, the Association aims to register 15,000 evaluations on their site by the fiscal year 2025. This increase in registered information is anticipated to provide more decision-making materials for apartment buyers, thus enhancing transparency in the real estate circulation market and expanding the apartment market.

Related Links

• - Explore the Apartment Management Appropriate Evaluation Site here.
• - Access the SUUMO Property Library here.

For further details, please download the PDF at the link provided above.