Securitize and LIFULL Partner to Tokenize the Rural Japanese Real Estate Market

  • A partnership between two companies has announced the completion of a Blockchain Crowdfunding solution in an attempt at solving Japan’s Vacant house crisis.
  • With an almost aging workforce and most of the youth migrating to urban areas in search of job opportunities leaving the countryside properties deserted.
  • It has been reported that two companies have jointly come up with a Blockchain solution in a bid to help solve Japan’s vacant house problem in rural areas.

A partnership between Securitize a compliance platform offering expertise in digital securities, fixed income, and real estate and Social Funding Co has announced the successful completion of a funding platform using digital currencies for real estate investments.

The project was launched by LIFULL and Securitize subsidiary BUIDL. This was before Securitize acquired BUIDL in December 2019 but gave commitments to carry on with existing partnerships. In the course of the project, they were able to prove how more efficient and cheaper crowdfunded Real Estate Funds based on Blockchain turned out to be in comparison to more traditional alternatives.

Securitize CEO Carlos Domingo has expressed excitement at the potential a comprehensive crowd-sourced Real Estate Funds in modernizing Japanese real estate markets.

Rural-Urban Migration

Getting a house for free might sound like a con however Japan faced by an uncommon housing quagmire, the fact that it has more homes than the people expected to live there. With an already aging population (more than 20% of its population aged 70 and older and the birth rate declining), most of the young people have more often than not ended up migrating from rural to urban areas where they can get jobs.

As they move away they leave the countryside deserted with houses abandoned without heirs or new owners dubbed ‘Akiya’. In 2018 a record high of 13.6% properties across Japan was declared Akiyas.

This is seen as a move to attempt to revitalize Japan's real estate in less desired countrysides as LIFULL explained in a statement. They are positive that renovating and upgrading the homes would prove essential in addressing the vacant housing issue in the country.

“Regional revitalization of real estate crowdfunding is being promoted as a solution to this problem.”

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