Nearly 40% of Investors Seeking to Sell One-Room Investment Apartments Abandon Sale Due to Excessive Loan Balances; MAMORU with Zero Management Fees Supports Exit Strategies

SOZO Inc. (Headquarters: Chuo-ku, Osaka City, Osaka Prefecture; CEO: Kohei Hatanaka) has revealed through internal data analysis that nearly 40% of inquiries to its one-room investment apartment sales service, "ReTrue," are from owners who have abandoned plans to sell due to excessive outstanding loan balances. The company offers a rental management service called "MAMORU," which provides comprehensive support from financial restructuring to optimal timing recommendations for sale—all at zero management fee—for such owners.

Reality of Sales Inquiries — 40% Cannot Sell Immediately

Analysis of inquiries received by ReTrue shows the following breakdown (based on internal data):

- Sold without additional personal funds: 35% - Sold with personal funds (sale price insufficient to cover loan balance, shortfall covered by personal funds): 18% - Decided not to sell: 9% - Abandoned sale due to excessive loan balance; shifting focus to financial review via MAMORU: 38%

Only 53% of owners successfully sold their properties, while the remaining 38% were unable to proceed due to loan balances exceeding sale prices. Including the 9% who chose not to sell, nearly half of the owners are opting for alternatives to selling.

Why Can't They Sell? — Stagnant Prices and Rising Interest Rates Exacerbate the Problem

In the one-room investment apartment market, property prices remain high, while loan repayment burdens are increasing amid the Bank of Japan's interest rate hikes.

Even in SOZO’s dataset of 785 cases, properties priced above 20 million yen show effective yields converging around 4%, indicating a structural issue where price increases do not translate into improved returns. Under these conditions, it is increasingly common for outstanding loan balances to exceed sale prices, creating a situation where owners “want to sell but cannot.”

MAMORU’s Approach — Reducing Debt and Creating the Right Time to Sell

MAMORU supports owners who cannot sell through two key approaches to improve their financial situation and identify the right time to sell:

① Cost Reduction via Zero Management Fees By eliminating the typical property management fees, MAMORU improves monthly cash flow, allowing owners to reduce their outstanding loan balances and narrow the gap between sale price and debt.

② Increased Income and Higher Sale Price via Rent Increases With rental rates steadily rising in major cities, MAMORU renegotiates rents to appropriate market levels, increasing monthly income and accelerating debt reduction. Additionally, higher rental income improves the yield-based valuation of the property, enhancing overall sale conditions.

By combining these two approaches, MAMORU guides owners toward their desired exit. When the optimal timing arrives, MAMORU supports the sale through ReTrue’s auction-style sales process.

Educational Article Published for Owners Unable to Sell Due to High Loan Balances

SOZO has published a detailed article explaining the causes of being unable to sell when loan balances exceed sale prices, along with data-backed strategies for improving finances and identifying the right time to sell. Please read it for further insights.

▼ How to Handle a One-Room Investment Apartment That Cannot Be Sold Due to Excessive Loan Balance https://mansion-investment.jp/report_overloan/

Comment from Kohei Hatanaka, CEO of SOZO Inc.

"Among the owners who come to us for sales consultations, many are stuck due to loan balance issues and have been struggling for a long time. Not being able to sell is not the end. There is an alternative: improving finances while waiting for the right time to sell. Through MAMORU, we aim to work together with these owners to develop their exit strategies."

Services Operated by SOZO

### MAMORU A rental management service for investment property owners. MAMORU offers zero management fees while providing end-to-end support, including rent appraisal, tenant management, tax support, and sales consultation. Using AI data and proprietary research, MAMORU supports optimal, revenue-maximizing rent setting. Official website: https://sozo-property.jp/mamoru/ Inquiries: 06-6755-8360 (10:00–19:00) / 24-hour LINE support

### ReTrue A sales service for one-room investment apartments. ReTrue supports owners with zero brokerage fees through an auction-style appraisal process involving over 100 potential buyers. This competitive bidding system aims to achieve the best possible sale conditions. Official website: https://mansion-investment.jp/

About SOZO Inc.

SOZO Inc. operates various services to maximize asset value for investment property owners. Through its auction-based appraisal service "ReTrue" and rental management service "MAMORU," the company provides comprehensive support from property acquisition and management to sale.