The announcement comes at a time when interest in the blockchain technology has piqued within the real estate industry
One of Japan’s largest homebuilders, Sekisui House, announced on its website that it is preparing for certain rental contracts to go on the blockchain. The announcement, made yesterday stated that the Japanese real estate giant will adopt blockchain technology for rental housing contacts, including those related to water and electricity. The move enables Sekisui House to get one step closer to achieving one-stop leases for rental properties.
The use of blockchain technology has been a hot topic in the real estate industry. Not only can the technology ensure that every transaction is regulatory compliant and legitimate, but it can also eliminate the requirement for the involvement of a third party.
Moreover, blockchain records are immutable and tamper-proof. The efficient use of the technology can reduce costs and allow for improved security.
This initiative by Sekisui House enables users staying at Shamaison rental homes to enter properties without contacting third-party estate agents. Prospective tenants can register using their phone numbers and addresses to fulfil transactions that can be easily verified with the use of the blockchain. Existing technology allows clients of Sekisui House to open and close doors to houses with just a click on their smartphones. The upcoming measures are set to be implemented by March 2021.
This is not the first time that the use of blockchain technology is being explored in the real-estate industry. Last year, Malta ruled that all real estate transactions were to be registered on their blockchain to protect against tampering and improve security.
Malta’s Prime Minister, Joseph Muscat said that “We will now be showing people the added value of this technology through applying it to something which they will use in their daily lives. Such a contract cannot be tampered with and only those authorized will be able to access it. This shows how the digital transformation will affect their lives.”
A month later, Japanese commercial giant, Sumitomo, partnered with BitFlyer Blockchain to build a blockchain-based real estate platform for Japan. Yuzo Kano, managing director of BitFlyer Blockchain, stated that “It can greatly simplify the real estate rental contracts process, and the intermediary company can also reduce its significant administrative costs.”
Sekisui House began building a blockchain-based real estate information management system in 2017. The company collaborated with KDDI and Hitachi for the project. It is also a member of Nexchain where a consortium of companies shares information on areas including blockchain.