Connecting business operations with contribution to society
Homes

Adapting to changes in society such as the aging and declining population and diversification of lifestyles, working to provide comfortable living to as many customers as possible as quickly as possible

Condominium Redevelopment

Providing a solution to the social issue of aging condominiums
by persistently maintaining sincerity with the residents

Several elderly women chat enjoyably in the 1st floor lobby of the newly built condominium. Some men are reading in the residents' library. The symbolic tree stretches its branches across the courtyard, slowly passing the time.

This is the Atlas Ikejiri Residence, completed in 2014 by Asahi Kasei Realty & Residence Corp. to replace the Ikejiri Danchi housing complex located here in Tokyo’s Setagaya Ward. Ikejiri Danchi included shops and offices in addition to residential units, and featured excellent transport access, but the aging structure had inadequate earthquake resistance. Although talk about rebuilding it began as early as 1993, concrete plans failed to materialize for many years due to the complex relationship of ownership and lease rights among the various residents and tenants. The structure continued to age further with no resolution in sight until Asahi Kasei came to carefully listen to the assorted views of each party, and successfully craft a proposal for rebuilding that was deemed acceptable among the many concerned parties.

Aging condominiums are a challenging social issue for Japanese society. The supply of residential units in multi-dwelling structures swelled from the 1970s—including both commercially developed condominiums and publicly operated housing complexes—and condominium life became common in major urban areas. There are now over 6 million condominium units in Japan, and some 14 million people, over 1/10 of the population, live in condominiums. But over 1 million of these units are in buildings that do not meet the latest earthquake-resistance standards, and in many cases the older buildings are deteriorating beyond their age due to inadequate maintenance.

While rebuilding such older structures would greatly contribute to the safety and security of the community, there are difficult challenges to overcome. Many residents and other parties with fractional ownership rights are retirees who are unable or unwilling to make a large investment in a project to rebuild. Although amendments to relevant laws and regulations have made it easier in principle to obtain agreement to rebuild, progress has been generally slow. To craft a complex proposal that meets the various needs of the many interested parties is a time-consuming process that requires persistence. Many developers simply decided that there would not be a sufficient financial return to justify such effort.

Asahi Kasei began tackling this challenge 15 years ago, leveraging the experience and know-how gained in its housing business to sincerely appreciate the needs of each concerned party, and to craft an acceptable proposal. Having successfully completed many such condominium redevelopment projects, the company is contributing to a comfortable life with peace of mind for a large number of people, with residential environments featuring not only outstanding earthquake resistance but also barrier-free functionality and many shared facilities to foster a greater sense of community among residents.

Condominium Redevelopment Research Center

The Condominium Redevelopment Research Center of Asahi Kasei Realty & Residence Corp. serves as the central base for know-how to flexibly apply to individual projects. Mr. Yugo Ohki, who spent many years in the condominium redevelopment business puts it this way, “Redeveloping a condominium requires a detailed understanding of each individual resident’s feelings, their wants, and their needs. Many people have fractional ownership of the structure, and they all have different individual circumstances. I apply my years of experience to come up with a proposal that various different parties can accept. By replacing an old worn-out building with a new one, we contribute to the safety and security of the community, which creates value for society."

Notable housing complex redevelopments by Asahi Kasei Realty & Residence Corp.

  • Dojunkai Edogawa Apartment Complex, redeveloped as Atlas Edogawa Apartment Complex (Shinjuku Ward, Tokyo)
    ⇒ Achieved a redevelopment which had been in planning for 30 years
  • Suwacho Housing Complex, redeveloped as Atlas Suwacho Residence (Shinjuku Ward, Tokyo)
    ⇒ The first successful redevelopment under the amended law
  • Kokuryo Housing Complex, redeveloped as Atlas Kokuryo (Chofu City, Tokyo)
    ⇒ The first redevelopment to remove the legal designation of a housing complex
  • Ikejiri Danchi, redeveloped as Atlas Ikejiri Residence (Setagaya Ward, Tokyo)
    ⇒ Successful redevelopment overcoming coexistence of ownership rights and lease rights
  • Chofu Fuijimicho Housing Complex, redeveloped as Atlas Chofu (Chofu City, Tokyo)
    ⇒ Redevelopment removing the legal designation of a housing complex and repositioning a public road