Unraveling the Mystery of Unclaimed Real Estate in Japan | Unknown Facts

In fiscal year 2021, Japan's state treasury received a staggering 64.7 billion yen from the assets of deceased individuals without heirs, marking a substantial 7.8% increase from the previous year and nearly doubling the figure from a decade ago. Additionally, every year, around 120 billion yen worth of inactive bank accounts are left unclaimed. However, under new laws, the government is now permitted to utilize these unclaimed funds to support non-profit organizations. On June 21, 2021, Japan's National Assembly passed a revised law, which allows for investment of these funds in startups for the public benefit.

While dealing with financial assets is already challenging, managing physical assets such as apartments and houses proves to be even more difficult. Abandoned houses, in particular, have been rapidly increasing throughout various communities in Japan. Tokyo's Setagaya ward alone houses over 50,000 abandoned structures, the highest number of any residential area in the country. These houses were primarily built by the Japanese government after World War II to address housing shortages. However, after the burst of the real estate bubble in the early 1990s and subsequent economic downturn, these homes were predominantly rented to elderly individuals, low-income families, and persons with disabilities.

The impact of population aging is particularly severe in these areas. For instance, as of March 31, 2021, approximately 24.9% of households residing in social housing within Tokyo were occupied by individuals aged 75 and above who lived alone, accounting for 52,886 households. Furthermore, the number of "kodokushi" or lonely deaths, increases when individuals living alone, like the woman from Edogawa ward, are found deceased in their homes. In fiscal year 2019, there were 580 reported cases of "kodokushi," a number that rose to 675 in fiscal year 2021. This means that almost two people die alone in apartments owned by the city every day, and dealing with their assets has become a tremendous headache for authorities.

The situation becomes even more complex when factoring in the amount of time it takes for a new tenant to move into a vacant property. It can take up to six months to complete the necessary paperwork and preparations. Consequently, countless communities in Japan are being plagued by the presence of abandoned houses. A study conducted by the Japanese government in 2015 revealed that nearly one-third of the heirs to these abandoned properties intended to maintain the status quo, as a way of preserving the memories of their parents or loved ones.

In light of these circumstances, companies like Bxia have emerged to address the challenges posed by property without heirs. In Japan, these specialized cleaners are known as "ihin seirishi," professionals experienced in handling the belongings of the deceased. In fact, there is even a private accrediting organization that provides certificates to individuals practicing in this field.

Looking ahead, the inheritance problem related to the aging population in Japan is only expected to worsen. By 2025, the baby boomer generation in the country will be 75 years old or older, leading to an increase in the number of individuals passing away and leaving behind inheritance complications.

The phenomenon of property without heirs in Japan is a pressing issue that local authorities are grappling with. The aging population, declining birth rate, and an increasing number of single-member households have resulted in numerous cases where deceased individuals have no relatives to inherit their assets. This poses significant challenges in managing and distributing these properties effectively. Additionally, the presence of abandoned houses further aggravates the situation, requiring specialized cleaners and extensive efforts to handle these properties. As Japan's population continues to age, it is crucial for authorities to address these inheritance problems effectively.