Japan’s Housing Provision Initiative(Covering the policies and experiences of the highgrowth period)

Akiko Ito
Deputy Director General
Housing Bureau,
Ministry of Land, Infrastructure, Transport and Tourism

Population Composition by Age- The current population pyramid of Myanmar is roughly the same shape as that of Japan approximately 50
years ago.
- Japan’s population pyramid is becoming constrictive due to the progression of the decreasing birthrate andaging population.

Japan and Myanmar population composition by age
Japan 1964

Japan 2014

Myanmar 2014

50
years

Population

127,083,000

97,186,000

51,486,000(7,360,000)

No. of households

52,450,000

21,820,000

10,880,000(1,580,000)

No. of dwellings

60,630,000
100%

21,090,000
87%

8,050,000
32.4%(1,170,000)

97.8%

69.4%

12.5%

Electricity coverage rate
Piped water supply coveragerate(69.3%)(13.3%)

Figures in parentheses: Yangon City
[Sources]- Japan population/pyramid: Census (MIC), Japan no. of households & dwellings: Housing and Land Survey (MIC) * As the Housing and Land Survey is conducted every 5 years, the data shown is that of 2013 and 1963.
- Japan piped water supply coverage rate: Changes in piped water supply coverage rate (Ministry of Health, Labour and Welfare) *1965 data is shown for 1964.
- The data for the electricity coverage rate of Japan for 1964 is taken from The Federation of Electric Power Companies of Japan website. (However, the data is that of 1927.) The data for 2014 is an estimated value.
- Myanmar population/no. of households/electricity coverage rate (electric light coverage): The 2014 Myanmar Population and Housing Census, Myanmar population pyramid/no. of dwellings: from DUHD documents.
- The number of dwellings in Yangon City is an estimated value in which the total number of dwellings in Myanmar is multiplied by the household rate.
- Myanmar piped water supply coverage rate: Tap/piped water rate, water sources other than drinking water, 2014 Census.

2Japan in 1964
1964 Hosted the Tokyo Olympic Games

Source：Japan Olympic
Committee

1964 Opened the Tokaido Shinkansen

Source：Central Japan Railway Company

1962 Opened the Metropolitan Expressway

Source：Metropolitan Expressway Company Limited

3

Aging Rates in Other Countries○ Compared with France, which took 115 years for the aging rate to double from 7% to 14%, andGermany, which took a comparatively short 40 years, Japan only required 24 years.
○ Asia is aging rapidly, however, aging in Japan is the most advanced, and no similar cases exist for reference.
Country

Population aging rate

No. of years for aging rate
to double

7%14%

7%→14%

Japan

1970

1994

24

Germany

1932

1972

40

UK

1929

1976

47

USA

1942

2015

73

Sweden

1887

1972

85

France

1864

1979

115

South Korea

1999

2017

18

Brazil

2011

2032

21

Thailand

2003

2025

22

Tunisia

2009

2032

23

China

2001

2026

25

Source: Ministry of Health, Labour and Welfare4Population Changes○ The population of Japan grew until 2008.
○ Between 1955 and 1970, approximately 5 million people migrated to the Tokyo metropolitan area fromprovincial regions, and population concentration in the capital continued.
Population change in Japan

Population migration in Japan

Population (thousands)
Approx. 5 million people
from 1955 to 1970

140,000

2013
Approx. 127,000,000

120,000

100,000

Tokyo
area

80,00060,0001945 (War end)
Approx. 72,000,000

40,000(Reference) Yangon population increase
Population

20,000(Year)
Total population
人口総数（実績）(actual)

Total population

人口総数（推計）(estimate)

Source: Created from National Institute of Population and Social Security Research “Latest Demographic Statistics (2015)”

Future population: 2013 population by gender and age (general population) is taken as
standard, and the following assumed fixed : 2013 female age-specific fertility rate (total fertility
rate: 1.43), sex ratio (female 100:105.1 male) , life table mortality rate (average life span: male:
80.21, female: 86.61). International migration: zero.

7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
05,142,128
3,691,941
2,472,176

1,993

1,998

2,011

Diagram: Yangon City
population change
人
24721763691941
5142128
Source: The Project for the Strategic Urban Development Plan of the Greater Yangon (JICA)

5

Three Pillars of Japan’s Housing Policy
Japan Housing Corporation (1955 - )Mainly rental housing and housing land development for main body of workers inmetropolitan areas

Public housing (1951 - )Local authorities supply low-rent housing for low-income people
Government Housing Loan Corporation (1950 - )Provision of affordable housing through public financing* Housing Construction 5-Year Program (1966 - )A plan which establishes housing construction aims over terms of every 5 years

Realization of rapid economic growth and healthy and cultural lifestyles* 1945 Shortage of 4.2 million housing units due to war damage.
1968 Total number of housing units exceeds total number of households nationwide.
1973 The total number of housing units exceeded the total number of households inevery prefecture.
6

Outline of Master Plan for Housing Development in Myanmar
DUHD
One million housing plan for 20years
The 1st Five year Plan (2011-2015) 0.10 million
The 2nd Five year Plan (2016-2020) 0.18 million
The 3rd Five year Plan (2021-2026) 0.30 million
The 4th Five year Plan (2026-2030) 0.42 million
20 years total 1.00 million
Yuzana low cost housing (1,2,3)

Shwe Lin Pann low cost housing

Dagon Seikkan affordable housing

6U 4S/ 8U 4S (Total 864 units)(464/484 Sqft)

8U 4S (496 units)(618.25 Sqft)

24U 18S(total 4000units)(average 600 Sqft)
Source: DUHD

7

Japan Housing Corporation (1955 - )Mainly rental housing and housing land development for main bodyof workers in metropolitan areas

Publicly-operated Housing (1951 - )Local authorities supply low-rent housing for low-income people

Government Housing Loan Corporation (1950 - )Provision of affordable housing through public financing

8Japan Housing Corporation (JHC)○To deal with huge mitigation to metropolitan area, JHC supplied large number of collective
housings and residential land mainly for middle income people in major urban areas
Scheme of Housing Supply and
Residential Land Development
Guarantee

Japanese Government
Funds（FILP etc.）
long term and low interest

Private funds

Capital injection
Interest subsidies

Japan Housing Corporation
Housing loan

Housing and residential
land for sale

Rental Housings9Devices for mass supply of housing in Japan○With the nationwide unified standard design, standardization of modules/housing components,
the mass and efficient supply and industrialization of housing units became possible
Standardization of modules / housing
components

Development of the nationwide
unified standard design (plan)

Huge supply to resolve the housing shortage(high-volume production, standardization)
Massive supply of DK (dining room + kitchen)plan by Japan Housing Corporation<nationwide unified standard design: 63 Type>

BL(Better Living)
components(1974~)

Stair Case

Storage

Bathroom

WC

Japanese room (2)

UP

DOWN

Entrance

Japanese room (1)Storage

Dining andKitchenBalcony

43 m2

10

Housing supply by Japan Housing Corporation·Mass supply of same unit plan

Example of New Town development·Supply at same time
(as a result, residents are in same generation)·Most projects are consisted of housings

Example of large-scale housing complex

Tama New town（Tokyo） 【1971】
Number of housing units ：58,239(supplied by UR：10,954（rent）16,659（sale）)

Kori Danchi（Osaka） 【1958】
Soka Matsubara（Saitama） 【1962】 Chigusadai Danchi（Chiba）【1965】
Number of units：4,881（rent）172（sale） Number of units：5,926（rent）
Number of units：2,099（rent） 11

Myanmar Housing Development Example
YADANAR HNINSI RESIDENCE

12

Installation of housing related Public Facilities in Japan○ On supplying housings in large scale, related public facilities such as schools, parks, roads,
sewers, etc. are also developed.
○ Such public facilities are supported by national and local governments.
Collective
housings

Commercial

Railway
StationStationRelatedinfrastructuredevelopment

Free passage

BicycleParking

Pedestrian
Deck

Detached
housings

Sewerage

StationSquareCommercial

PublicPark

SchoolRegulating
Pond
ParkingRiver

Main Road

13

Age bracket in housing complex in Japan○As a result of the large number of housings being supplied at the same time,
the age bracket of the households was extremely biased.

【Image of the transition of the age bracket in residential complexes】
Approx. 20years from moving inApprox. 30-40years from moving in

The age of parent and child generation
is extremely biased
H785～<male><female>〈男〉〈女〉

Parent generation being aged
H2785～
<male><female>〈男〉〈女〉
80～ 8475～ 7970～ 7465～ 6960～ 6455～ 5950～ 5445～ 4940～ 4435～ 3930～ 3425～ 2920～ 2415～ 1910～ 145～ 9
0～ 4歳

Moving in

80～ 8475～ 7970～ 7465～ 6960～ 6455～ 5950～ 5445～ 4940～ 4435～ 3930～ 3425～ 2920～ 2415～ 1910～ 14
5～ 9
0～ 4歳

500

0

0

Family of 3 to 5 personwith parent and child

500

500

0

0

500

Becomes only two person by household separation
Increase of elderly couple households

14Based on Japan‘s experience ① Town planning·Uniform: All housing plans are the same

· Wide variety of building design (height, area, type of plan, etc.)·Single use: only residential area

· Mixed land use with commercial facilities, child rearing and welfare·Same time occupancy: results samegenerations

facilities etc.
· Phased development
Child-rearing
facility/elderly
facility

Renewed housing
SchoolReconstructedhousing
Development of
the station square
Station square andreconstructed housing
complexCommercial
facilityChild-rearing facility

Development of adisaster-prevention
park

Construction of a city
planning road

Elderly facility
Detached housings
constructed on residual
land generated byreconstruction

Development of apromenade
Private condominium on
residual land generated byreconstruction

Condominium
constructed on residual
land generated byreconstruction

Installment of elevators,
total renewal, reductionin floor area, etc.
Redevelopment of disasterprevention parks, etc. utilizing
existing greenery15Based on Japan's experience ② Maintenance and Management○Classification of components by the service life
Interior components and equipment which has short service life was designed to makereplacement possible without modifying the frame part such as pillar, beam, floor etc.

Infill
Separation ofelectric wiringfrom Skelton

Common Drain Pipe
Structural
framework
aiming for longterm durability

Commonvertical drainpipe locatedoutside of unit

Simpleshaped floorslab etc.

SkeltonOrdinary
housingcomplex

Housingcomplex withdevised design16Three Pillars of Japan’s Housing Policy

Japan Housing Corporation（1955-）
Mainly rental housing and housing land development for main bodyof workers in metropolitan areas

Publicly-operated Housing （1951-）
Local authorities supply low-rent housing for low-income people

Government Housing Loan Corporation (1950 - )Provision of affordable housing through public financing

17

Public Housing○ A system in which low-rent housing is provided to low-income people in housing difficulties.
○ As a rule, dwellings are built and managed by local authorities.
○ Construction costs are subsidized by the national government, reducing the burden on residents.
○ The following people are eligible:- Category 1 public housing: income quantile 17-40%*- Category 2 public housing: income quantile 0-17%*- As a rule, households of 2 or more people*The standard from 1968 to 1971 when the greatest amount of public housing was supplied

Public housing national support scheme

Public dwelling layout<A 1965 standard 2DK public dwelling＞[Costs required for provision](Category 1 public housing) (Category 2 public housing)

National
government

Construction
cost
Land
purchase
cost

Local
authority*
Local
authority*

1/2

National
government

2/3

Local
authority*

Woodenfloor
room

Tatami-mat Closet
room 1

Entrance

ClosetKitchenTatami-mat
room 2BathLocal
authority*

Balcony*Local bond issuance is possible

Note: The system from before 1996. The current system has changed. 18

Three Pillars of Japan’s Housing Policy

Japan Housing Corporation （1955-）
Mainly rental housing and housing land development for main body ofworkers in metropolitan areas

Publicly-operated Housing （1951-）
Local authorities supply low-rent housing for low-income people

Government Housing Loan Corporation (1950 - )Provision of affordable housing through public financing

19Framework of GHLC （～2007） ※Savings deposits

Banks, etc

Fiscal Investment and Loan Program

Loan
insurance

Adjustable Interest rates

GHLC

Long-term fixed interests rates（to induce development of quality stock）
Consumers※ From 1950 to 2007
・ “GHLC (Government Housing Loan Corporation)” provided long term fixed rate housing loans directly to “Individual Borrowers”
・ Necessary fund was raised through the Ministry of Finance (MOF), including from “Postal Savings (Deposit from General Public)”
In accordance with development of Financial Market, the scheme was shifted to the following in 2007:
・ Private Financial Institutions provide Housing Loan (not directly by JHF)
・ JHF purchases Housing Loans from Private Financial Institutions, securitizing them into MBS (Mortgage Backed Securities ) and selling
MBS to Financial Market (Funds of Private Financial Institutions are raised from Financial Market through securitization by JHF)

20

The Role of GHLC ①Long term and fixed rate public housing loans○

Long term (35 years) and low interest rate (reduced with subsidies from General
Appropriation）public housing loans had been provided.
○ The share of GHLC financed houses among owner-occupied houses had been around 50%
in the 1980’s and 1990’s.
The scheme of housing loans for individuals and construction loans
Payment

Repayment
Ministry of Finance(General Appropriation)

PrivateDevelopers
Loan(short term)
2 years

Subsidy

Constructand sell

Loan
GHLC(now JHF)

Housingwith quality
Purchase
Loan(long term)
35 years
Individual
Borrowers

Ministry of Finance(FILP)
Mandatory
depositTax

PostalSavings
Voluntarydeposit
GeneralPublicRepayment
21

The Role of GHLC ①Long term and fixed rate public housing loans
The average attribution of housing loan borrowers as of around 1970
（Suppose the price of the house is １００.）
・Downpayment

４０・Borrowings

６０（GHLC Loan ３０, Private Loan ３０）（The outline of GHLC loans as of around 1970）○ Maximum Loan Amount・ Maximum loan amount varied by structures,
sizes and locations of houses.
（The average LTV (Loan To Value) ratio of GHLC
loans had been about 30%.）【The detached house at that time】○ Loan Maturity
・ Wooden, etc. ： １８years
・ Semi-Fireproof ： ２５years
・ Fireproof： ３５years○ Eligibility of Borrowers
・ Monthly income should have been more than 6 times
as much as monthly installment.
（The criterion was equivalent to 16.7% DTI (Debt To
Income) ratio and only for the amount of GHLC loan.）

22

The Role of GHLC ②Securing high quality of houses○

Higher technical standards (ex. Structure easy to check equipments, energy efficientperformance, etc.) than those of the Building Standard Law※ which are minimum standards forall buildings had been required as GHLC underwriting criteria.

※ Applies to all buildings. Inspection for the earthquake resilience performance, etc. is implemented.

Relevance of Underwriting Criteria and the Building Standard Law

Level of technical standards

Technical
Standards
For
higher LTV ratio, etc.

Much higher level

Insulation, checking port forequipments, durability, etc. of houses

Technical
Standards
mandatory for
GHLC loan

The Building Standard Law
Applicable to all houses（As of 1997）■Standards for buildings
Structure, fire resilience・exit,
general structure・equipment, etc.
■Standards for urban development
Purpose・figure, etc.
23

The Role of GHLC ②Securing high quality of houses○

GHLC had inspected the houses to secure the adaptation to technical standards with
enforcement of interim inspection during construction.

More GHLC financed houses survived the Great Hanshin-Awaji Earthquake（1995）.※１（※１ Nearly 6,500 were dead or missing)
Ratio of houses destroyed or heavily damaged※２※２・ Other wooden structure houses : Based on an analysis of 3,953
houses in Chuo-ku, Kobe city
・ GHLC financed houses : Based on an analysis of 1,068 housesin the area which vibrated to the extent of 7th degree on Japanese
earthquake scale in Takarazuka City, Nishinomiya City, Kobe City,
etc.

(Source：Building Research Institute, Report on the damageof the Southern Hyogo Prefecture Earthquake in 1995)(Source) Survey on the damage of the Southern Hyogo Prefecture Earthquake onhouses built with loans from Government Housing Loan Corporation in 1995
Report by the committee for the survey of the building damage of Hanshin-Awaji
Earthquake, which occurred in 1995

24

Improvement of Earthquake Resistant Performance of Existing Buildings[Major events]

Comparison of the damages of buildingｓ in Great Hanshin-Awaji Earthquake

1950 Enactment of The BuildingStandard Law (BSL)1981 Wide amendment of seismic code
1995 Great Hanshin-Awaji Earthquake
Enactment of The Act ofPromotion of Seismic Retrofittingof Buildings (APSRB)
2011 Great East Japan Earthquake
Amendment of APSRB(Mandatory seismic assessment ofLarge scaled hospitals, department
sores, hotels, schools, etc.）

Examples of seismic retrofitting
Source; Japan Building Disaster
Prevention Association

Additional Sheer wall

Jacketing of columns

Additional steel braceｓ

25
25

Housing Construction 5-Year Program
Enactment of housing
construction
programs

Enactment of Housing Construction Planning Law (1966)

1st Housing Construction 5-Year Program (1966–1970)“A housing unit for every household”
Mass supply of
public housing

Nationwide, the total number of housing units exceeded thetotal number of households (1968)

2nd Housing Construction 5-Year Program(1971～1975)
The total number of housing units exceeded the total number ofhouseholds in every prefecture (1973)

Change fromquantity-oriented toquality-oriented

3rd Housing Construction 5-Year Program(1976–1980)▪Establishment of housing standard which should be guaranteed to all citizens(minimum housing standard) and housing standard which should be guaranteed
to average households (average housing standard)

4th to 7th Housing Construction 5-Year Program（1980～2005）

Response todiverse housing
needs▪Establishment of living environment standard
Earthquake resistant, energy saving, barrier-free support, etc.

Enactment of the Basic Act for Housing（2006）
26

The Basic Act for Housing (2006)
Stipulates policies and basic principles to ensure and improve stable housing, clarifies the responsibilities ofthe public sector, including the National Government, and stipulates the formulation of basic plans for houses
and other fundamental matters to enable citizens to lead enriched lifestyles.

Background
Housing Construction 5-Year Program (formulated 8 times since 1966; 8th program ended in 2005)◇Targets were set for numbers of houses to be constructed by public organizations, the Housing Loan
Corporation and the Japan Housing Corporation, every five years.

Drastic changes in socioeconomic conditions
Shift from
Quantity to
Quality•Sufficient stock of houses•Declining birthrate, decreasing population andnumber of households

Shift to a new housing policy
Policies related to ensuring and improving stable housing Provision of safe, secured and high-quality housing stockand living environment Housing market environment improvement for optimizationof housing transactions and facilitation of distribution
 Establishment of housing safety nets for people having
difficulty to secure a house27

Overview of Basic Plan for Housing(2016-2025)
Issues for the next 10 years
Population aging

Vacant houses

Housingenvironment

Declining birthrate

Circulation ofexisting houses

Housing stock
management

Plan points
Create housing which offers peace of mind to young people, households withchildren, and the elderly

Promote distribution of existing houses and use of vacant properties

Revitalize the housing industry which supports housing and the actualization of astrong economy
28