【Higashikojiya, Ota-ku】Acquisition of Old, Small House in Redevelopment Prohibition and Terraced Housing

Philia Corporation (Itabashi-ku, Tokyo; Representative Director: Naoyuki Koshikawa) has released a case study of acquiring an old property that cannot be demolished or rebuilt, being "prohibited from redevelopment (no road frontage)" and "terraced housing (row house)."

▶ https://philia-co.com/purchase/otakuhigashikojiya-saikenchikufuka-kaitori/

This case is introduced as an example of a new approach to address the growing problem of vacant houses and complex ownership adjustments.

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【Background】 According to a survey by the Ministry of Internal Affairs and Communications, the number of vacant houses in Japan is increasing year by year, and the management and disposal of vacant houses have become social issues. Currently, in the Tokyo Metropolitan Area and its three surrounding prefectures, properties with "redevelopment prohibition," "co-ownership," or "row house/terraced housing" often face rejection from major real estate agencies due to difficulties in obtaining housing loans and complex ownership adjustments, leading to many cases where sales and disposals do not proceed.

【Case Summary】 This is a case study of acquiring an old property that cannot be demolished or rebuilt, being "prohibited from redevelopment (no road frontage)" and "terraced housing (row house)." While such properties typically have no value in the general market, we evaluated it with the premise of renovation to utilize the existing building.

Redevelopment-prohibited and terraced property in Higashikojiya, Ota-ku

【Property Overview】 Location: Higashikojiya, Ota-ku, Tokyo Transportation: 15 minutes walk from the nearest station Property Type: Used detached house (terraced style) Building Area: Approx. 40 sqm Year Built: Built in 1965 (approx. 60 years old) Current Condition: Vacant Special Notes: Redevelopment prohibited (no road frontage), difficult to separate Transaction Type: Our company's purchase

【Background and Challenges of Consultation】 Although it was a compact house built in 1965 with a building area of 40 sqm, it was a property with numerous hurdles for sale. Firstly, due to not fronting a road designated by the Building Standards Act, it was a "redevelopment-prohibited" property, meaning a new house could not be built if the current one was demolished. Furthermore, as it was "terraced housing" with its wall connected to the adjacent house, demolition (separation) would require the consent of the neighboring property owner. However, even if separation were achieved through great effort, there would be no benefit in making the land vacant since redevelopment would not be possible. We were consulted with the feeling of being "at an impasse, with no solution."

Higashikojiya, Ota-ku, Tokyo

【Our Response and Solution】 General real estate companies and developers evaluate properties as "land," so this property, being redevelopment-prohibited, would be deemed "zero value" or a "negative asset requiring disposal costs." However, we focused on the potential for regeneration as a "building." Despite its old age, we determined that the pillars and foundation could still be utilized and proceeded with the acquisition for "resale after renovation," without assuming demolition.

【From the 담당자 (Person in Charge)】 Properties like this "terraced property with no road frontage" are among the most difficult to find buyers for, as they cannot secure housing loans and cannot be rebuilt in the future. After our company's acquisition, we completely renovated the interior and restored it to a beautiful state. As a result of our sales efforts, it was purchased by an elderly customer who preferred homeownership over renting, as their "forever home." By matching this niche demand for an "inexpensive and compact owned home," we achieved a result that pleased both the seller and the buyer. No matter how poor the property conditions, there is always a way forward if you change your perspective.

Old property that cannot be demolished or rebuilt

【Future Outlook】 Philia Corporation will strengthen its provision of realistic solutions based on over 1,000 on-site experiences and transparent appraisals utilizing IT, in response to the worsening vacant house problem. Moving forward, we will further deepen our collaboration with administrative bodies and legal professionals to transform "problem properties" that are difficult to utilize into "valuable assets" that contribute to regional safety and security. We aim to build infrastructure for sound real estate circulation that does not leave a legacy of problems for future generations.

▶About Philia Corporation Philia Corporation is a real estate company specializing in the acquisition and resale of "vacant houses" and "problem properties" that are generally difficult to sell, such as redevelopment-prohibited properties, co-owned properties, and row house/terraced buildings, primarily in the Tokyo, Saitama, Chiba, and Kanagawa areas. With over 1,000 consultations and a representative who holds the qualification of "Vacant House Advisor," we carefully unravel complex ownership relationships and legal restrictions, finding new value even in properties rejected by other companies.

▶Company Overview Representative: Naoyuki Koshikawa, Representative Director Business Activities: Real estate sales and regeneration Location: Maison NOWROAD 1F, 1-25-17 Akatsuka-shinmachi, Itabashi-ku, Tokyo 175-0093 URL: https://philia-co.com/

▶Contact Public Relations: Katsuno [email protected] Keywords: