The following is a summary of the recent information that has come out since the share house and whole-building investment scam scandal has been exposed in Japan.
Inflated rental projections
Guaranteed or estimated market rents were set much higher than actual market rents in order to inflate yields and sale prices. Share houses were perfect for this since it can be difficult to gauge appropriate market rent, making it easy to inflate figures. Share houses operated by one defunct operator were running at occupancy ratios of just 20%.
This content is available to paid subscribers only. To join our paid subscription service and access over 3,100 news articles on Japan's real estate market, please register here.
Already a paid member? Log-in using your details below.