Management standards move to the initial sales stage
MLIT promulgated implementing regulations and a notification on July 31 for the expanded condominium management-plan certification system. From April 1, 2027, developers will be able to apply for certification before a condominium project is handed over to the owners' association. Until now, applications have essentially been made by managers representing established management associations. The reform aims to ensure that long-term repair plans, reserve contributions and governance arrangements are structured from the sales stage and transferred properly to the owners after completion. Certification standards for applications by existing management associations are also being revised.
Management quality becomes increasingly visible in resale analysis
Location, floor area and age are not the only factors determining condominium value. Repair plans, reserve balances, payment levels, arrears and governance can directly affect future special assessments and marketability. Extending certification to new developments gives buyers another standardized framework for comparing management quality. Certification should not be interpreted as a guarantee that a building will appreciate or never face funding shortages. Overseas purchasers should still review the long-term repair plan, management-fee and reserve history, meeting minutes and professional management reports. Applications submitted from April 2027 will be assessed under the revised standards.