IREM’s visit took the delegation to Sapporo in Hokkaido, Japan, for IREM Japan’s Annual Meeting, the equivalent to the annual IREM Global Summit in the USA. This year, 85 new members were welcomed into the IREM Japan community at the conference, bringing total Japanese membership to around 700. IREM Japan, notably, has five chapters across the country, highlighting the influence of IREM in the region, and making Japan an IREM country. Japan’s first chapter was established in 2003, making IREM Japan one of IREM’s longest international partnerships. Since then, IREM’s president has always been invited to lead Japan’s swearing-in ceremony and meet with leaders to discuss operations.
Real estate management in Japan – key differences
For IREM to continue to flourish in Japan, or anywhere else, the key is to understand the unique challenges our members and prospects face in the region. With this knowledge, IREM can craft education and solutions customized to their needs. Based on the enthusiasm for IREM education and certification in Japan, there’s momentum for IREM to thrive while supporting property managers throughout the country.
Most IREM members in Japan focus on residential property management. A significant issue they face is the housing market, particularly the increasing cost of renting residential properties compared to stagnating wages and an aging population. Additionally, there’s an ongoing debate about renovating aging infrastructure, versus building new buildings. Members in Japan point to trends in tenant preferences, including new construction over renovation, in part due to financial issues.
Sustainability is another area of interest in Japan. IREM Japan has shown strong interest in ESG (Environmental, Social, and Governance) education, mirroring global trends towards sustainable development. Japan already has several baseline programs addressing water and energy usage, and there's a strong interest in integrating IREM’s CSP (Certified Sustainable Property) certification into their practices.
IREM’s Japanese members are exceptional hosts, and make every visit special. This trip included a welcome dinner for their overseas visitors, which included leadership team members from IREM coalition partner CCIM (Certified Commercial Investment Member). The CCIM organization is also finding opportunities to grow in this market.
One of the activity highlights was a property tour of Es Con Field Hokkaido, a baseball stadium located in Kitahiroshima, Hokkaido, Japan. Home of the Hokkaido Nippon-Ham Fighters of Nippon Professional Baseball (NPB), the stadium has capacity for 35,000 people! It opened recently with the first game held on March 30, 2023.The property is so large it includes dining, entertainment, and even housing for ball players and other communities.
Naturally, the IREM team engaged in strategic discussions with our Japanese leaders, chapter presidents, and IREM Japan’s board of directors. One of the main topics was language support. Currently, most resources from IREM headquarters are in English, posing a challenge for non-English speaking members. There was a consensus on the need for more Japanese translations and accessible resources on IREM’s website.
Another focus was on educational materials. Japan, like many other countries, has specific market conditions and regulations that need to be reflected in IREM’s training programs. Ensuring that educational content is relevant and practical for Japanese members is crucial, and an ongoing commitment from IREM’s International Department.
The visit to Japan was a fruitful endeavor, strengthening the bond between IREM and its Japanese members. It provided valuable insights into the unique challenges faced by property managers in this extraordinary country, and highlighted the importance of support from IREM headquarters for more language resources and tailored education.
IREM is fortunate to be held in high regard by the Japanese market, which values the recognition and prestige that comes with IREM membership and certification. As IREM continues to expand its international presence, visits like these are vital to understanding and addressing the needs of our global members, ensuring we provide relevant and valuable support.