Two Japanese companies have developed a block-chain solution to respond to the large number of empty houses in Japan.
The compliance platform for token issuers "Securitize" has joined forces with the Tokyo-based company LIFULL as part of this project. The aim is to create a financing platform that uses digital securities for investments in real estate. In a press release dated March 10th, the two companies announced that the collaboration has got off to a successful start and that the block-chain technology and digital securities provide more effective crowd financing for the Japanese real estate market than traditional methods.
Focus on revitalizing homes
The new platform will be used by LIFULL Social Funding. The company is a direct subsidiary of Securitize. The platform will be used to revitalize houses that are no longer in use, or those that are considered completely abandoned. CEO and co-founder of Securitize, Carlos Domingo, commented on the project and its importance for Japan:
Our joint success in creating a comprehensive platform solution for overflow financed real estate funds is very exciting and a great start for Securitize and LIFULL as we work together to modernize the Japanese real estate market.
Problem in Japan results from lack of refurbishment measures
LIFULL sees the problem behind the nationwide vacancy of houses in the absence of renovation measures that would maintain and improve the value of the properties. In Japan there are around eight million "abandoned" houses, which are the result of a massive urbanization trend. With a population of around 126 million people, there are around 15 inhabitants per ghost house. Until the bubble burst in the late 1980s, the Japanese real estate market had grown exponentially.
Since many jobs are now only available in Japan's big cities, families are being driven out of the country. Schools in rural areas close due to low attendance.
