Sakura Office Launches Emergency Support Service for Long-Term Repair Plan Review Amid Naphtha Shock

Sakura Office Co., Ltd. (Shibuya-ku, Tokyo / President and CEO: Naoya Yamamoto), a real estate consultancy known as "Real Estate Expert" offering comprehensive personal real estate consulting, home inspections (housing diagnostics), and consulting services for condominium management associations, has launched an emergency interim service called the "Emergency Support for Long-Term Repair Plan Review." This service responds to rising construction costs and material supply disruptions caused by the "naphtha shock" stemming from deteriorating Middle East conditions. Please feel free to contact us for inquiries regarding this service.

Even condominiums without imminent repairs are not immune

The naphtha shock caused by worsening Middle East conditions has led to soaring prices of petroleum-based construction materials essential for large-scale repair work, such as waterproofing agents, paints, and sealants. Some building material manufacturers have already announced price increases of 10–30%, and prices are expected to remain high in the foreseeable future.

While some management associations may believe this situation does not concern them because major repairs are not immediately scheduled, in reality, nearly all associations—including those planning repairs five or ten years from now—will be affected. Leaving repair reserve fund plans unchanged while construction costs rise means that owners may eventually face unexpected financial burdens through loans or special assessments.

Three often-overlooked considerations

Most management associations have not yet addressed the following critical considerations under the assumption of rising prices:

Multi-scenario financial verification

What will happen to the reserve fund’s income and expenditure if construction costs exceed projections?

Prioritization and selection of repair work

Can repair cycles be delayed? Can repair areas be selectively addressed based on whether scaffolding is required?

Independent review from the management association’s perspective

Management companies, due to their position, tend to propose conservative plans. Both pessimistic and optimistic scenarios must be proactively evaluated by the management association, with support from external experts.

Which condominiums are particularly at risk?

Management associations that meet any of the following criteria face a high urgency to revise their plans immediately:

- Planning large-scale repairs within the next five years - Fewer than 50 units, leading to higher per-unit cost burdens - Have not reviewed their long-term repair plan in over five years

In response to these concerns, Sakura Office has launched this emergency support service focusing specifically on structural elements affected by the naphtha shock. Neutral third-party experts, with no conflict of interest in contracting or construction, will conduct financial simulations under multiple scenarios and support the optimization of repair priorities and planning. The first consultation is free.

For details and inquiries, visit the "Emergency Support for Long-Term Repair Plan Review" service page.

About Sakura Office

Sakura Office Co., Ltd. (Shibuya-ku, Tokyo / President and CEO: Naoya Yamamoto) is Japan’s first comprehensive real estate consultancy dedicated to individual clients, operating under the mission of "pursuing happier relationships between people and real estate, and passing on a richer, more beautiful society to the next generation." Founded in 1999 by real estate consultant Osamu Nagashima, the company provides impartial services—including home inspections (housing diagnostics), consulting for condominium management associations, and various real estate purchase advisories—through its "Real Estate Expert" service, backed by over 78,000 client cases.