Maturing Front-Service Market Due to Fewer New Condominiums and Rising Management Costs

「The environment surrounding condominium sales nationwide remains challenging, with the number of new units continuing to decline, construction costs remaining high and a shortage of suitable construction sites. As a result, the number of large properties capable of adopting condominium front-desk services is declining. Other business risks arising from changes in the operating environment include difficulties in securing front-desk personnel and maintaining service quality amid nationwide labor shortages, as well as difficulties in maintaining front-desk operations because condominium associations are experiencing deteriorating financial conditions due to rising management costs.」

「For unprofitable staffed front-desk properties with low profitability and little prospect of successfully negotiating increases in management fees, amid deteriorating financial conditions at condominium associations, higher labor costs and local hiring difficulties, the company proposes switching to OICOS, which enables the provision of high-value-added services without on-site staff, and, depending on the circumstances, is also considering negotiations to terminate the contract or withdraw from the property.」

「Against a backdrop of deteriorating financial conditions at condominium associations, higher labor costs and local hiring difficulties, some staffed front-desk properties are unprofitable, with low profitability and little prospect of successfully negotiating increases in management fees.」

「Against a backdrop of deteriorating profitability at condominium management associations, rising labor costs and regional recruitment difficulties, the company continues to prioritize profitability in dealing with unprofitable staffed front-desk properties where profitability is low and successful negotiations to increase management fees are unlikely. It proposes switching to OICOS, which enables the provision of high-value-added services without on-site staff, and, where appropriate, conducts negotiations to terminate contracts and withdraw.」

「As the number of new condominium starts has been declining in recent years, the company is expanding into non-condominium front-desk services, including shared offices, coworking spaces and corporate reception services.」

「Recent trends in new condominium sales indicate that the market is unlikely to expand as rapidly as before, partly because the number of properties suitable for providing various services is declining. In addition, more condominium associations are facing difficult financial conditions because of rising management costs.」