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Addressing the Speculative Flipping Issue in the Real Estate Market

Nittetsu Kowa Real Estate Co., Ltd. (Headquartered in Minato, Tokyo, CEO: Masahiro Miwa) is taking significant steps to tackle the growing concern of speculative short-term flipping in the condominium market. Recently, the Japan Real Estate Association released a statement addressing this issue, and Nittetsu Kowa is committed to adhering to its principles by enforcing strict sales policies aimed at preventing speculative buyers.

Company's Position on Speculative Sales

As a response to the issues surrounding speculative transactions, Nittetsu Kowa has adopted a clear policy: sales targeting short-term speculative investors will not be conducted. This aligns with our commitment to fostering a healthy real estate market and ensuring that our properties are purchased by individuals or families who intend to make them their homes.

Key Measures Implemented

To uphold this policy, Nittetsu Kowa has introduced several important measures regarding the sale of its condominiums. Below are the details of these measures which will be implemented moving forward:

1. Limiting the Number of Purchases:
From now on, regardless of whether the purchaser is an individual or a corporate entity, the maximum number of condominiums that can be bought from our inventory will be capped at two per property. Additionally, for any given sales period, each household will be allowed to register to purchase a maximum of two units.

2. Stringent Contractual Conditions:
We will implement a strict contractual requirement that all transactions must occur under the name used for registration. This means that contracts, transfers, and any registrations of ownership will be performed in this name. This requirement will be explicitly stated in all important documentation such as the important matters explanation document and the sale contract, ensuring transparency and compliance.

3. Prohibition of Rights Transfer Before Handover:
In efforts to further control speculative behaviors, any transfer of rights before the official handover of the property is strictly prohibited. No sale activities will be allowed until the buyer has formally received the property. Should any violations of this policy be discovered, we retain the right to terminate the contract. As with other regulations, these prohibitions will be clearly outlined in the relevant documentation.

By implementing these measures, Nittetsu Kowa aims to safeguard the integrity of the real estate market and contribute positively to community development. The rise of short-term speculative practices not only affects market stability but also undermines the essence of homeownership.

Conclusion

Nittetsu Kowa recognizes its responsibility as a leading real estate firm to ensure that its properties are sold to individuals and families genuinely seeking homeownership rather than investment opportunities aimed at short-term gains. By enforcing these rigorous measures, we hope to foster a more sustainable and equitable housing market for all. Through our commitment to responsible practices, we aspire to set a precedent for the industry and encourage other real estate companies to follow suit for the betterment of the entire community.