Expressing the aspiration, Mr. Yokota, Representative Director, states a commitment to contribute to the improvement of reliability, transparency, and awareness in the real estate cash flow industry, aiming to contribute to the expansion and development of the sector.
On the 28th, the Real Estate Crowdfunding Association held its inaugural event at Marunouchi Trust Tower.
Established on August 30, the association aims to contribute to the improvement of reliability, transparency, and awareness in the real estate crowdfunding (CF) industry, thereby safeguarding consumers (individual investors) and contributing to the further development and expansion of the industry. Mr. Daizo Yokota, President and CEO of Clear (Inc.), a company that operates an online market service for real estate funds, assumed the role of Representative Director. At its inception, the association had 18 member companies.
During the commemorative event, Mr. Yokota, the Representative Director, explained the current state and future challenges of the real estate CF market and outlined the association's activities. Regarding the real estate CF market, Mr. Yokota stated, "With the trend of real estate tech and the creation of individual asset formation driven by the so-called ¥20 million retirement problem, the market is expected to further expand. Online transactions for real estate have just begun, with only 2.6% of users having investment experience. Real estate CF contributes to the fractionalization and commoditization of real estate investments, aligning well with the Japanese mentality of 'not wanting to incur losses' due to its middle-risk, middle-return product characteristics."
While there are close to 70 players in the real estate CF services, Mr. Yokota expressed concerns about the potential emergence of products where principal repayment becomes difficult due to issues such as "misleading fundraising" and "sloppy project management" as more companies enter the market. He emphasized the need for an institution that can objectively and impartially oversee the entire industry, stating, "As the industry expands, there is a need for an organization to oversee the industry from an objective and neutral standpoint."
He explained the purpose of establishing the association, stating, "Through activities that contribute to the improvement of reliability, transparency, and awareness in the real estate CF industry, we want to contribute to the expansion and development of the industry."
In the future, the association plans to engage in activities such as (1) formulating industry rules and guidelines, (2) building a crowdfunding database, and (3) disseminating information through industry reports and white papers. (1) Involves promoting awareness of guidelines related to real estate CF from the Ministry of Land, Infrastructure, Transport and Tourism, making requests to the government, and considering voluntary regulations in the future. (2) Aims to build a system that discloses critical information about real estate CF services in a neutral position to the general investor. Mr. Yokota expressed the intention to disclose information that goes beyond the real estate securitization investigation conducted by the national government. (3) Involves compiling market reports covering the number of real estate CF services, industry size (fundraising amount), asset type classification, yield trends, and more. The association will also organize activities such as reviewing examples of overseas services, inter-operator exchanges, discussions on increasing awareness of real estate CF, and tax system discussions.
Mr. Yokota expressed the desire to have 80% of service providers become members of the association. He also mentioned the intention to include service providers offering real estate Security Token Offerings (STO) that utilize blockchain technology, stating, "We want being a member of the association to become a status, and we aim to brand the association accordingly."
Reprinted from: Real Estate Distribution Research Institute Co., Ltd. “R.E.port”
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