Real Estate in JapanINTRODUCTION
The real estate industry plays a major role in the creation and development of living and urban
environments such as housing and office buildings, which are the foundation of residents’
lives and corporate activities. It supports Japan’s economic growth through the supply ofhigh-quality houses and condominiums, the revitalization of cities and regions, the development, management, and operation of office buildings and commercial facilities, real estate
securitization, and other business.
According to the Annual Report on National Accounts, the real estate industry represents over
10% of Japan’s gross domestic product (GDP), indicating that it occupies a vital position
within Japan’s economy.

CONTENTS
5. Internationalization 

OVERVIEW OF MAJOR REAL ESTATE SECTORS

011

6. Environment/Energy, Disaster Preparedness
and Area Management 
012

1. Office Building (Urban Redevelopment) 002

2. Housing 

004

Environment/Energy 

012

For-Sale Transactions 

004

Disaster Preparedness 

013

Leasing 

006

Area Management 

013

Real Estate Transactions 

006

REAL ESTATE-RELATED DATA

3. Resorts/Hotels, Commercial Facilities andLogistics Facilities 
008
Resorts/Hotels 

008

Commercial Facilities 009

Logistics Facilities 009

4. Real Estate Securitization 014

POLITICAL, SOCIAL AND ECONOMIC EVENTS;
REAL ESTATE-RELATED POLICY (Timeline)


010

001
Real Estate in Japan030

• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSOFFICE BUILDING(URBAN REDEVELOPMENT)OVERVIEW OF MAJOR REAL ESTATE SECTORS: 1

OFFICE BUILDING(URBAN REDEVELOPMENT)
History of Office Building Development

Progress in Urban Redevelopment

The history of office buildings in Japan is said to have begun in the Meiji
period. The completion of Mitsubishi Ichigokan and red brick Western stylebuildings at both ends of Babasakimon Road heralded the creation of thefirst Western style business avenue. In 1914, the Mitsubishi Nijyuichigokan,full of modern facilities, was completed, marking the beginning of the dedicated building leasing business.

There was booming building demand resulting from the high growth
period beginning in 1955 and the rental building market has developed
remarkably as a result of responding to this demand. Throughout thelate 1950s and early 1960s, a number of Mitsubishi Estate buildings
were completed as well as a series of company buildings for financial
institutions and newspapers located on national land they had been
granted, forming most of the Tokyo business district covering Otemachi,
Marunouchi and Yurakucho.

The Marunouchi Building was completed in 1923, and the importance of the earthquake- and fire-resistant architecture symbolized by
the Marunouchi Building began to be recognized after the Great Kanto
Earthquake which occurred the same year. Although many rental buildings burned and were lost during the awful events of World War II, thefull-fledged construction of rental buildings took off with the recovery
beginning in 1950 after derequisition of the buildings remaining from thewar and revision of the Rent Control Act.

There was a dramatic relaxing of regulations limiting building heights
thanks to the creation of the Specified Blocks System*1 in 1961 and theintroduction of FAR Regulations*2 in 1963. Between the 1960s and early
1970s, various systems were established for securing a good city environment and attracting superior architecture and developments. These
included the establishment of the new City Planning Law in 1968 as wellas the City Redevelopment Law in 1969. Private companies took advantage of the opportunities presented by these developments to embark onlarge redevelopment projects.*3 Simultaneously designated as the first
special urban block in 1964, Tokyo’s Tokiwabashi Redevelopment (Nippon
Building, etc.) and Kasumigaseki Building were completed one after
another in 1968. At the time, they were respectively the largest redevelopment and the first super high-rise building in the East. Also in 1968, thepreparation of infrastructure on the former site of Tokyo’s Yodobashi Water
Purification Plant was completed, the land was sold to the private sector,
and construction of Shinjuku’s new downtown area of skyscrapers began.

In the early 1950s, some of the buildings whose construction had begun
during the war but had been suspended or that had been started after
the war were completed, but it was in the late 1950s that the first building boom occurred, against the backdrop of the post-Korean War Jinmu
Economy. Although banks’ assessment of the real estate industry waspoor, and the procurement of funds remained difficult, the building
business took off as the system of Construction Cooperation Funds—
via which funds for construction were obtained from companies thatplanned to enter buildings as tenants once they were completed—became commonplace.

*1. Specified Blocks:
Districts designated by the City Planning Act for preserving and forming superior city spaces. Within these designated blocks, regulations under the BuildingStandards Act are not applied and unique FARs, height restrictions and wall plane locations are designated for said blocks.
*2. FAR Regulations:
FAR refers to the ratio of the total building floor area to lot area.
*3. Redevelopment Projects:
There is legal redevelopment and voluntary redevelopment. Legal redevelopment projects are urban redevelopment projects based on the Urban Renewal Act
and these projects are executed as city planning projects.They seek to improve the disaster preparedness capabilities of cities and renew city functions. Voluntary
redevelopment includes the rebuilding of buildings.

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORS

Upon entering the mid-1970s, there was a slowdown in the concentration of industries and people in major cities, and the building boom also
calmed down. On the other hand, high-quality developments worthy of
being called “town creation” projects began to be conducted utilizing a
new business system. One project representative of this is the Ark Hills
project in Minato Ward, Tokyo, that was completed in 1986. In addition,
Hibiya City, consisting of four buildings, was completed in 1981 on two
specified blocks that were the former site of NHK. This project is wellknown as a project in which air rights*4 were sold within the specified
blocks.

OFFICE BUILDING(URBAN REDEVELOPMENT)

birthrate, and aging of society, so efforts are underway such as the inclusion of the Location Optimization Plan System in the revised Act on Special
Measures Concerning Urban Renaissance enacted in August 2014.

International Competitiveness of Cities
Because of economic globalization, the industrial global competitivenessof cities has become a national development focus. In order to compete
effectively with major world cities such as New York, London, and other
Asian cities, whose progress has been remarkable, it is necessary forJapan’s cities to look ahead and build appealing districts that will attract
international talent, companies, capital, and information.

The Bursting of the Bubble and Promotion of“Urban Regeneration”
Between the late 1980s and the early 1990s there was an unprecedented
development boom backed by the spread of information technology andthe emergence of Tokyo as an international finance center. Companies not
traditionally involved in development entered the building business andtriggered the soaring land prices that became known as the bubble. On
the other hand, during this period many mega projects that had been
conducted over a prolonged period began to appear. Examples of theseinclude Makuhari in Chiba Prefecture, Minato Mirai 21 in Yokohama,
Osaka Business Park (OBP) and Yokohama Business Park (YBP).

In 2011, the Act on Special Measures Concerning Urban Renaissance waspartially revised, and the specific urban redevelopment urgent development area system was set up designating regions where strengthening
global competitiveness would be particularly effective as “specific urban
redevelopment urgent development areas,” and a Comprehensive Special
Zone system was set up via the Comprehensive Special Zone Act.
Furthermore, the National Strategic Special Zones Act was enacted in2013, based on the objective of promoting the development of international economic activity hubs, and efforts are being made to enhance theinternational competitiveness of cities.

After the collapse of the bubble, the proactive promotion of urban redevelopment projects by private companies as measures to invigorate thecountry’s economy, which was mired in a continuing slump, had large
expectations placed on it. Redevelopment projects have a very highripple effect on the economy and greatly contribute to economic recovery
through an expansion of domestic demand.

Related section: Internationalization

Recent Office Building/Urban Development
In addition, in order to improve the disaster preparedness capabilities
of cities, an increasing number of buildings have BCP functions such asadvanced earthquake-resistant or seismically-isolated structures andemergency generators, and are designed to take in stranded commuters.

In 2002, through the establishment of the Act on Special Measures
Concerning Urban Renaissance, urgent urban regeneration districts
began. These are critical and important districts designated by the central government as bases for urban regeneration for city lots that should
be developed. This paved the way for sale of land by the JNR Settlement
Corporation and after that, large-scale redevelopments in Shiodome,
Shinagawa, Roppongi, and elsewhere have been since undertaken, andan enormous number of large office buildings supplied. Through privatecompany-based urban regeneration, many of the buildings in these areas
have built multi-use developments that are not just office buildings but
also include functions such as hotels, commercial facilities and theaters,developing public facilities to help solve various social issues and improvethe disaster preparedness capabilities of cities.

As new technologies such as IoT make remarkable progress and come to be
seen as pillars of the country's growth strategy, in order to respond to society’s dramatically changing needs, efforts and demonstration experiments
are underway to utilize these new technologies in urban development inaddition to efforts to realize smart cities with not only new technologies but
also environmental, energy, decarbonization and other measures.
Also, as work-style reform and open innovation, including startups andsuch, to increase productivity make progress, various types of offices suchas incubation offices, satellite offices and co-working spaces are emerging
in response to diversifying workplace needs.

On the other hand, the need was recognized for so-called “compact cities,”
compact urban development to maintain local dynamism while facilitating
comfortable life by guaranteeing government services, healthcare, welfare, commerce and other functions amid the declining population, falling

Related section: Environment/Energy, Disaster preparedness andArea Management*4. Air Rights(1) Right to use space above the land (air right) and (2) Right to receive transferred FARs from neighboring lots (transferable development right).

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSHOUSINGOVERVIEW OF MAJOR REAL ESTATE SECTORS: 2

HOUSING
residences constructed gradually increased, surpassing 100,000 units in
1969, for reasons including the Japan Housing Corporation beginning to
supply danchi condominiums.

Government Policy Expands from Post-War
Housing Shortage to Stock Use
Housing-related real estate business, which provides the residences foundational to citizen life, can broadly be grouped into for-sale property, inwhich land and building rights are sold, leasing, in which properties are
let in exchange for rent, and real estate transactions, in which land andbuilding sales or leasing is brokered.

Around this time, luxury condominium sales began in the very convenient downtown Tokyo and major real estate companies entered themarket. The Government Housing Loan Corporation (presently the Japan
Housing Finance Agency) began financing condominiums in 1970,
numerous high-rise condominiums appeared and they very quickly
became widely accepted.

Following the war there was a severe lack of housing due to the mass
burning of cities. As a result, housing supply was deficient by 4.2 million
units at the end of the war. In the mid-1950s, an explosive growth in the
population concentrated in major cities began to occur alongside Japan’s
rapid economic growth. The ensuing increase in land demand sent land
prices soaring, making the situation for housing even more severe. The
Japan Housing Corporation (presently the Urban Renaissance Agency)
was launched in 1955 as the trump card for eliminating this housing problem and it began to supply “danchi” or apartment complexes en masse.
These danchi spawned residential districts and led to the constructionof so-called “new towns” and the development of new city areas. As aresult, in 1968 the number of housing units surpassed the total numberof households.

In 1985, there were approximately 220,000 for-sale property units,
120,000 of which were condominiums. In 1992, the fixed-term leasehold
system* was established and condominiums using it began to also be
supplied.
In the 1990s, after the collapse of the bubble, corporate business restructuring led to the sale of factories and employee housing, and condominiums
were built on these sites. Downtown areas in particular, especially the Tokyo
Bay area, saw a large number of super-high-rise condominiums developed.
Once this corporate land sale settled down, redevelopment projects downtown and near train stations began to increase.

In general, housing is divided into apartment buildings and houses,
chosen by occupants based on their lifestyle, preference, etc. In recent
years, the government has set out policies focusing on stock use and isdeveloping systems to transact old housing and stimulate renovation.

Diversifying Housing Needs
With the advent of a serious decline in the birthrate and the super-aging ofsociety, the segment of the population buying condominiums has expandedfrom the traditional family segment to include DINKs, singles, retired individuals seeking to change their residences from standalone houses in thesuburbs to downtown locations, etc. These trends and changes in lifestyles
and tastes are diversifying the needs for condominiums.

For-Sale Transactions

History of For-Sale Condominiums
During the period of active danchi development after the war, most for-saleproperties were houses. Looking at new housing constructions statistics,
approximately 5,000 for-sale units were started in 1951 and most ofthese are thought to have been houses. After that, the number of for-sale

In response to these diverse needs, condominiums in various size ranges
are being supplied and various options are offered such as condominiums
with commercial facilities being developed on large-scale sites, large-scale* Fixed-term leasehold
The lessee must return the land to the owner once the leasehold period has expired, regardless of whether or not the owner has just cause. This type of leasehold
includes the following riders: (1) there is no renewal of the contract; (2) there is no extension of the lease period due to rebuilding; and (3) there is no right tobill for purchase of building.

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSHOUSING

Flow Chart of Condominium Business
Property
information

Land

Land
sales

Information acquisition
Property research& assessment

Construction start

Acquisition
contract

Product planning (1)Planning design

Delivery

DeliveryBusiness income & expenditures

Planning
DesignConstruction
completion

Sales start

Finalization of product content
Product planning (2)Basic plan

Basic design

Implementation design

Hanging of signage

Neighborhood
Permits (OK)Advance study &consultation

Explanation and negotiations

Building
Confirmation
application

Building
Confirmationacquisition

Inspection
by government,
etc.

Issuing of certificate
of inspection

Owner inspection

Construction
completion

Advance discussions
Construction launchConstruction

Construction Construction Model roomcompletion
launchopening

Sales(1) Sales center model room(2) Sales (management)

2-year inspection
6-month inspection after
completion of construction

Land selection for sales center and model room
(Selection of management company)

Sales
start

Contract

Delivery (owner)

Inside viewing

Delivery

1-year inspection

Sales method and price discussion

condominiums equipped with communal facilities such as party rooms
and guest rooms, green condominiums that focus on energy conservationand environmental harmony, and condominiums developed with a variety
of designs. Efforts regarding disaster preparedness measures such as baseisolation and damping structures, securing of emergency power supply,
setting up warehouses with stockpiles in the event of a disaster, etc. havealso become of greater concern since the Great East Japan Earthquakeof 2011.

condominiums is not reaching national targets for reasons including difficulties in forming consensus and problems with building regulations.

Growing Importance ofCondominium Management
It is standard for a management association made up of sectional owners
to be responsible for and handle condominium site and common area
management. In many cases, the management association collects
a management fee from the sectional owners for management task
expenses and hires a condominium management company.

Old Condominiums being Rebuilt as
Stock Increases
Condominium stock increases every year, exceeding a cumulative 6.5
million units. Of these, more than a few are old condominiums that do
not conform to regulations since the Building Standards Act was enacted,
sunlight regulations were introduced, or the multiple times earthquake
resistance standards were raised. Furthermore, while progress is being
made in infrastructure, construction methods, and developer productplanning, some condominiums have become obsolete with aging forhaving no elevators, posing difficulty in renovating piping and such. Thesemay need to be rebuilt.

In 1982, the Ministry of Construction (now the Ministry of Land,
Infrastructure, Transport and Tourism), created the Mid- and High-Rise
Apartment Management Rules (now the Condominium Management
Rules). Having made revisions when appropriate since then, many
management associations have maintained their condominiums by formulating long-term upkeep plans, collecting upkeep funds from sectional
owners and implementing planned upkeep based on the Condominium
Management Rules.
On the other hand, because laws and regulations such as the Act on
Building Unit Ownership were developed following condominium construction, some of those built before the legal framework have no management
associations or non-functioning ones and are thus problematic “partially-managed” condominiums.

In 2002, the Ministry of Land, Infrastructure, Transport and Tourism revised
the Act on Building Unit Ownership to relax the rebuilding consensus
requirement and implemented the Act on Facilitation of Reconstruction ofCondominiums. This made it possible for condominiums with a rebuilding
consensus to form a rebuilding association that would lead the rebuilding. In 2014, this Act was revised to include a Condominium Lot Selling
System for selling off land by removing it from compartmentalized ownership based on an 80% majority vote, making it possible to revitalize it forother uses such as commercial facility. However, progress in rebuilding

In order to solve these challenges, in June 2021, the Ministry of Land,
Infrastructure, Transport and Tourism revised the Act on Advancement of
Proper Condominium Management that incorporates the establishmentof the Management Plan Certification System whereby municipalities

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORS

certify the operation of management associations. In September of thesame year, the Basic Policy for Promoting Optimization of Condominium
Management, which sets out the roles of management associations,municipalities, government, etc. for optimization of management, wasformulated.

HOUSING

Due to the many problems surrounding real estate transactions in the turmoil after the war, a registration system for these brokers was established in1952 with the establishment of the Building Lots and Buildings Transaction
Business Act in order to protect client profit and achieve healthy growth of
the real estate business. This was revised to be a license system in 1964.
After that, the number of companies rose dramatically through the end of
the 1960s with the concentration of industry and the population in major
cities and growth in housing demand. This was right around when major
companies began entering the industry. Along with modernizing the realestate transaction business, this served to bring the business under the eyeof society, including the coordination of roles and responsibilities amongmajor as well as small and medium-sized players.

Leasing
After the war, the rental housing market shifted from public rental housing
provided by public housing corporations to address the housing shortage
to good-quality rental housing provided by the private sector. In particular,
the luxury rental housing market has entrenched itself as a strong market
in central Tokyo.

The Building Lots and Buildings Transaction Business Act was revised in1980 in response to social demand to clarify the contractual relationshipbetween the parties, establishing a general and exclusive broker contractsystem.* Documentation for certain items was required and the property
information of exclusive broker contracts shall be registered with an information network organization. Then in 1990, a dedicated exclusive broker
contract system* was started to promote the sharing of property information, making it mandatory to register these contract transactions on REINS(Real Estate Information Network System), a certified information networkorganization integrating the information network organizations by supply/
demand region.

In recent years, changes in the environment around the rental housing
market such as the falling birthrate and aging of society, diversificationof needs and population decline have produced a variety of measures.
Developments include serviced elderly housing, for which a registration
system was introduced in 2011 and which primarily targets residents over
60, offering support services such as life consultation and safety checks,
and rental apartments and dormitories for students by major companies tomeet student demand as both the number of exchange students and therate of educational advancement rise.

Real Estate Transactions

The government is setting out various policies to vitalize the real estatetransaction market by creating an environment in which consumers canconfidently choose and purchase existing residences. The revised Building
Lots and Building Transaction Business Act, which came into effect in2018, made it mandatory for housing agents to include whether or not
an inspection of the building has been conducted and a summary of theinspection results in their explanation of important matters or delivery

Modernization of Real Estate Transactions
The real estate transaction (brokering) business, which involves the brokering of land and buildings through buying, selling and leasing, has a long
history and is thought to be the origin of the real estate business.

Flow of Real Estate Brokerage Work
Sale

Purchase

Property
study
and priceappraisal

Concludeintermediary
contract

REINS
registration
Search anddiscover buyers

Confirm priceand other
desiredconditions

Concludeintermediary
contract

Search anddiscoverproperties

Confirm price,delivery
period andother terms

Explainimportantmatters

Conclude purchase agreement(send/receive deposit)(Receive brokerage commission)

Settle remaining funds
Apply for removal of mortgage
Apply for transfer registration
Deliver properties
Apply
for loan

Settle remaining funds
Establish mortgage
Apply for registration

Receive
brokerage
fee* Broker contract systems
General brokerage:
A contract in which the seller is, in principle, free to request brokerage from multiple brokers.
Exclusive brokerage:
A brokerage contract that forbids the seller from requesting another broker to broker a sale, purchase or trade or to act as a proxy.
Dedicated exclusive brokerage:
An exclusive brokerage contract with a rider forbidding the seller from signing a transaction contract with any party other than the one found by the requested broker.

006
Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSof a written document when signing a brokerage agreement, explaining
important matters, or concluding transaction agreements.

HOUSING

response to the diversification of housing needs and abundance of stock.
Renovation can mean either repairs or improvement; adding new value
to an existing building. In the real estate transaction industry, a businessmodel of proposing repair and improvement as a set when brokering ison the rise. Among property sellers, an increasing number of companies
have begun “flipping” properties – buying an existing building, renovating
it and selling it.

With the regulatory reforms and promotion of digital transformation (DX)in recent years, real estate transactions are increasingly being brought
online. The government is advancing institutional developments, etc. andthe explanation of important matters through utilization of IT was launchedin earnest in 2017 for leasing transactions and in 2021 for sales transactions. Delivery of manuals explaining important matters, etc. by electronicmeans is scheduled to start in 2022. Alongside such developments, operators are also moving to increase options for consumers such as with
non-face-to-face sales activities in an aim to enhance convenience.

In 2016, the revision of the Building Lots and Buildings Transaction
Business Act came into effect to promote the use of inspections by experts,
and in 2018 a system (Anshin R Jyutaku System) began through whichmarks are granted to properties that clear certain standards regarding renovation, etc. set by trade associations registered with the Ministry of Land,
Infrastructure, Transport and Tourism.

Renovation During the Stock Era
In 2006, a new Basic Act for Housing was executed, introducing a government policy of focusing on using existing stock through renovation in

Along with the creation of new, high-quality housing stock, this is expected
to promote the use of existing stock.

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSRESORTS/HOTELS,COMMERCIAL FACILITIESAND LOGISTICS FACILITIESOVERVIEW OF MAJOR REAL ESTATE SECTORS: 3

RESORTS/HOTELS, COMMERCIAL FACILITIES AND
LOGISTICS FACILITIESResorts/Hotels

Resort and Hotel Development

Inbound Demand and Hotel Supply

From the beginning of the 1960s, tour destinations across Japan began
to be developed as Japanese citizens started to have more leisure time.
Starting in the mid-1970s, the resort development boom re-emerged
and large multi-use resorts including ski slopes, golf courses, marinas,
and large-scale hotels were born on large development lots from a
few hundred to 1,000 ha. The Act on Development of Comprehensive
Resort Areas (the Resort Law) was then established in 1987, accelerating these developments.

A look at the current situation of hotels shows that foreign tourists accountfor a large portion of demand. Enhanced measures such as overseas
promotions to attract foreign tourists had been incorporated into the
Tourism Nation Promotion Basic Law which came into effect in 2006 andthe Tourism Nation Promotion Basic Plan established in 2007 (revised in2017).
While the number of foreign tourists has declined temporarily due to
COVID-19, new hotels are being developed in various locations in preparation for a post-pandemic recovery. Existing hotels have been renovatedand supply models diversified, for example with the conversion of officebuildings and commercial facilities into hotels.

The bursting of the bubble changed the situation. Many large resort facilities that had been developed under the application of the Resort Law
filed for bankruptcy as the number of customers and revenue/expenditureplans fell short of forecasts. In many cases, leading real estate companies
and others took over the operations. Recently there have been new developments of revitalization such as restoring past resort lots in addition todeveloping new resorts around hotels.

In the hotel business, the number of large-scale mixed-use developmentsthat incorporate hotels has been increasing since the late 1970s. The
business models include the management contract (MC) system, whereby
the hotel owner outsources management to a subsidiary or the like withmanagement expertise, and the franchise contract (FC) system, whereby
brand license and management expertise are received from a leadinginternational hotel or the like.

City Hotel Development
Supply of city hotels located mainly in major cities began to expand withthe 1964 Tokyo Olympics. This was to handle the demand for accommodation from overseas teams and press corps. Many of the hotels built during
this period are still considered leading Japanese facilities. After that,demand for accommodation came from businesspeople coming to Japanfor meetings during the remarkable economic growth of the high-growth
period, resulting in the development of business-oriented city hotels.

Furthermore, while there had been few genuine luxury hotels in Japantargeting affluent customers, in recent years, real estate companies havebeen seeking to attract luxury resort hotels, primarily from overseas. Foreign
brand hotels are opening one after the other.
Related section: Internationalization

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORS

Commercial Facilities

RESORTS/HOTELS,COMMERCIAL FACILITIESAND LOGISTICS FACILITIES

Logistics Facilities

Abolition of Large-Scale Retail Store Law
Increases Major Facilities

Greater Need with EC Market Growth

The high-growth period and beyond saw the development of suburban
roadside commercial facilities in line with the proliferation of automobiles,
but this development only accelerated in the 2000s. The abolition of theLarge Scale Retail Store Law in 2000 made large-scale commercial facility
development possible, and large-scale shopping centers called shopping
malls have sprung up one after another in suburban and rural areas.
Nationwide, large-scale and diverse commercial facilities such as shopping malls incorporating outlet malls, sports facilities and daycare facilities
are being developed.

Looking at logistics facilities, which have largely replaced conventional
warehouses, the expanding EC (e-commerce) market is making logistics a
more crucial part of social infrastructure, Japan’s logistics market is growing rapidly due to the flourishing 3PL* business and the functions requiredof facilities are changing. In light of this, real estate companies are entering
the logistics facility business as a new pillar of operations.
There are mainly two types of logistics facilities that real estate companies
develop, namely the multi-tenant type which leases to multiple companies
and the build-to-suit type which is developed for and leased to a particularcompany. With changes in consumers’ purchasing styles, large, advanced,
multifunctional facilities are on the rise, such as facilities that can processa large number of packages in a short amount of time or those that offer
storage or distribution processing. Designs that account for future implementation of new AI, ICT, and robots are also emerging.

As competition intensifies, maintaining and increasing the competitivenessof these facilities requires tenant leasing, operation/management and renovation, as necessary.
While difficult to secure large lots downtown, there are many examplesof large buildings being redeveloped to include shops and restaurants
or small buildings developed specifically for retail. Open plazas to promote interaction and hold community events, hosted by local managers
together with residents, are also becoming more common.

More logistics facilities are adopting quake-absorbing structures, installing
emergency generators and other BCP measures, and using LED lighting
and solar panels in the facilities in consideration for the environment. Of
the many different measures, others include establishing resting facilities,
cafeterias, nurseries, etc. for the employees of tenant companies.

* 3LP: Third Party Logistics. A business model in which all or part of logistics functions are outsourced to improve efficiency.

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Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSREAL ESTATE SECURITIZATIONOVERVIEW OF MAJOR REAL ESTATE SECTORS: 4

REAL ESTATE SECURITIZATION
History and Progress of Real Estate
Securitization

Specific Securitization Methods

Real estate securitization is a technique to obtain liquidity in real estatetransactions, which are typically high-priced and illiquid, by dividing ownership into investment units or securitizing the right to receive cashflowfrom real estate.

(1) Real estate investment trust
Real estate investment trusts are a collective investment scheme in whichfunds are gathered from investors and managed mainly in real estate,whose earnings are then distributed to the investors.

Real estate securitization goes back to the mortgage securities systemfounded in 1931, but the beginning of securitization in the current senseis thought to have emerged in real estate small lot products in 1987. Laws
around real estate securitization continued to be developed with the 1995
enactment of the Act on Specified Joint Real Estate Ventures and the 2000
revision of the Law on Securitization of Specified Assets by Special Purpose
Companies (former SPC Law) to the Act on Securitization of Assets (SPC
Law), simplifying the procedures for asset monetization-type real estate
securitization. Moreover, the revision to the Act on Investment Trusts andInvestment Corporations that same year made real estate a possible management asset of investment trusts and this led to the launch of JapaneseReal Estate Investment Trusts (J-REITs) in 2001. Now, management assets
are diversifying with the emergence of J-REITs specializing in hotels, logistics facilities, healthcare facilities, etc.

Investment trusts are a financial vehicle in which funds are gathered frommany investors and managed by investment professionals and earnings
are distributed to investors. Traditionally, the primary vehicle managed
in this structure was limited to investment securities. However, basedon a partial amendment of the Act on Investment Trusts and Investment
Corporations in 2000, real estate was recognized as an investment vehicle
for trusts, and in September 2001, the first two real estate investment trusts(J-REITs) were listed on the Tokyo Stock Exchange.
(2) Asset Monetization Securitization
Asset monetization securitization is a type of real estate securitizationin which companies with real estate transfer it to a vehicle* such as an
SPC, which issues securities to investors to raise capital. Its main aspect isfunding for particular types of real estate. Replacements of assets are notscheduled in principle.

The backdrop to this progress in real estate securitization includes thechange in thinking about risk regarding real estate, precipitated by the dropin land prices after 1990 and the increase in corporate need to separate
real estate ownership and management. It was also helped by the major
shift in financial and capital markets from indirect finance to direct finance,turning investment real estate into a financial product.

(3) Securitization by Real Estate Syndication
Real estate syndication, based on the Real Estate Specified Joint Enterprise
Act enacted in 1995, is when multiple investors jointly invest in real estate
to own and manage the real estate and obtain earnings from it. In order toprotect investors, licensed companies that meet the criteria with respect tocapital and personnel qualifications may raise funds from investors.
The act was revised in 2013 to separate companies’ risk of bankruptcy andin 2017 to make implementation possible through notification alone incases where only qualified special investors such as institutional investors
are targeted.This revision also established a small-scale real estate special
joint business system. Other regulation easing includes recognizing contracts granted online, regardless of project scale.

* When used in the context of securitization of assets such as real estate, vehicle refers to a device by which securities are issued.

010
Real Estate in Japan• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORSINTERNATIONALIZATIONOVERVIEW OF MAJOR REAL ESTATE SECTORS: 5

INTERNATIONALIZATION
office and housing demand to swell, and with progress in legal systemdevelopment and information disclosure, an increasing number of realestate companies are making moves, although this trend has temporarily
slowed down due to the impact of the pandemic.

Entering Giant Overseas Markets
The dawn of Japan’s real estate internationalization was the 1970s, whensome major real estate companies began to go overseas. The strong yen
in the 1980s boosted companies’ overseas expansion and the favorable
domestic economy helped numerous major real estate companies acquireand manage real estate overseas in earnest.

In addition to developing individual office and apartment buildings inthese countries, more real estate companies are using urban development
expertise cultivated in Japan to build large-scale mixed-use developments
together with local developers. Even in the West, recent years have seen
companies not merely investing but building offices as well.

Although the bubble burst suspended this momentum, since 2010 major
real estate companies have once again been developing business overseas. Using development and management expertise cultivated over many
years to export problem-solving city models takes the high growth rates
in Asian and other countries and links it to Japanese company growth.
Based on this trend, in April 2015, the Ministry of Land, Infrastructure,
Transport and Tourism created a new International Affairs Division in theLand Economy and Construction and Engineering Industry Bureau of thetime to support the overseas development of real estate and construction
companies.

Inbound Efforts
Direct investment in the Japanese real estate market by foreign investors
and companies is gaining steam with the exception of hotels and othersections for which inbound demand from foreign visitors to Japan is a concern. As business globalizes, 2013 saw the creation of National StrategicSpecial Zones where a diverse menu regulatory reform seeks to provide
the world’s most business-friendly environment.

From Western Cities to Asian Countries

After the Tourism Nation Promotion Basic Law was established in 2006,
the number of foreign tourists showed a steady increase with the exception of temporary decrease from the 2008 global financial crisis and theGreat East Japan Earthquake. A record number of 31.88 million tourists
was achieved in 2019, but this fell to 4.12 million in 2020 when the pandemic hit, a decrease of 87.1%.

Overseas business in real estate was mainly office building acquisitions in
the major cities of advanced Western countries. These cities could expect
global demand and had legal frameworks for real estate and rules for international transactions, and disclosed plenty of data on real estate.
From 2010, in addition to mature global cities, investment began to flow to
new destinations such as China and Southeast Asian countries where thereal estate market centering on urban areas backed by large populations
and economic growth was rapidly swelling.

In view of the post-pandemic recovery of inbound demand, it is hopedthat proactive dissemination of information on tourism in Japan as well as
MICE (meetings, incentives, conferences and exhibition) business events
that may potentially attract customers and promote interaction as well as
create large economic ripples will see full-fledged resumption under public-private partnership.

These emerging countries were not easy destinations due to “country risk”
stemming from unstable political situations and legal systems and scarce
disclosure of market information in addition to the immaturity of their realestate markets. However, rapid urbanization and economic growth caused

Related section: Office Building (Urban Redevelopment): Resort Hotel

011
Real Estate in Japan• Real Estate in Japan •ENVIRONMENT/ENERGY,DISASTER PREPAREDNESSAND AREA MANAGEMENTOVERVIEW OF MAJOR REAL ESTATE SECTORSOVERVIEW OF MAJOR REAL ESTATE SECTORS: 6

ENVIRONMENT/ENERGY, DISASTER PREPAREDNESSAND AREA MANAGEMENT
Environment/Energy

Sustainable Urban Development

Environmental Policy Trends

Cutting-edge initiatives toward sustainable urban development are taking
off in the real estate industry. State-of-the-art buildings and housing suchas Zero Energy Buildings (ZEBs), Zero Energy Houses (ZEHs)*1 and certified
low-carbon houses*2 are coming on to the market.

Environmental issues, particularly those related to climate change, area serious problem that affects the global community. In 2020 Japandeclared its intention to become carbon neutral by 2050. With this, in
2021 the raising of the CO2 emissions reduction target for 2030 and orientation for energy composition were indicated in vital strategies such as theEnergy Basic Plan and Global Warming Countermeasures Plan.

Over the past few years, new concepts seeking a lower environmental loadand sustainability in investment and development, like ESG investment(investment focused on companies considerate of the environment, society and corporate governance) and the Sustainable Development Goals(SDGs), have emerged.

In the field of residences and buildings, ZEH and ZEB targets, etc. for 2030
and 2050 were indicated and debates on expanding the utilization ofrenewable energy are accelerating.

With regards to systems for evaluating and certifying the environmental
performance of housing and buildings, besides national systems such as
the housing performance indication system or BELS, there are also systems
run by private-sector organizations and the like, including CASBEE and LEED.
Real estate companies are expected to not only actively use such systems
but also pass on information to tenants and housing buyers.

Real Estate Industry Issues and Voluntary
Action Plan Formulation
When it comes to the impact of the real estate industry on the environment, reducing energy consumption and reducing CO2 emissions at thesame time have become pressing issues. Other important issues in thedevelopment and management of real estate include alleviating the heatisland effect accompanying urbanization, reducing business-related waste
emissions and final disposal amounts, and preserving biodiversity.

Image of ZEB
Solar power generation
Use of solar heat
Reduction ofoutside air load

Radiant cooling

Airflow High-efficiency
windows

Louvereaves

High-efficiency
A/Clighting

Wall-mounted solar panels andsolar panels for windows(see-through)In March 2013, RECAJ formulated the Real Estate Industry Environment
Implementation Plan, which sets forth medium- to long-term environmental action targets, and has been conducting yearly follow-up surveys
targeting member companies. Also, in 2021, it formulated the Long-Term
Vision for the Real Estate Industry for the Realization of a DecarbonizedSociety, which organized the means of contribution and orientation for thereal estate industry to proactively work toward the realization of a decarbonized society looking to 2050, and also broadly revised the Real Estate
Industry Environment Implementation Plan as a medium-term environmental action goal for 2030.

Cool roof

Glass roof

Task-ambient
lighting

Use of daylightRiver water usage

LED lighting
Use of Organic EL lighting
daylight

Total heat exchanger

Energymanagement
support provider

Natural ventilation
Outside air coolingNighttime outside
air coolingTask-ambient A/C

Low-E
double-glazed glass windows

Reduce internal load

Outside airload reduction

VAV, VWV
Entrance/
exit facilities

Cool tube(geothermal use)(well-water use)

Large-temperature BEMS
difference air supply
Desiccant A/C

Geothermalheat pump
Inter-building flexibility

Wastewater heat recycling

High-efficiency heat pump
High-efficiency boiler
Cogeneration
High-efficiency pump
Use of incineration plant
waste heat

Use of unused energy
High-efficiency heat source

Source:	created based on Sustainable Open Innovation website*1 ZEB/ZEH:
A building that offsets its energy consumption by producing energy with solar panels or other equipment installed in the building.
*2 Certified low-carbon houses
Launched by the Low Carbon City Promotion Act enacted in 2012, these are houses with CO2 emission-limiting equipment or performance.

012
Real Estate in Japan

Area use• Real Estate in Japan •OVERVIEW OF MAJOR REAL ESTATE SECTORS

Disaster Preparedness

ENVIRONMENT/ENERGY,DISASTER PREPAREDNESSAND AREA MANAGEMENT

Area Management

Improving Disaster Preparedness Capabilities
of Cities (Hard and Soft Measures)

What is Area Management?

Efforts to improve the disaster preparedness capabilities and business
continuity of major cities is extremely important in maintaining Japanesesociety and economic functions, and the real estate industry has worked
to do this with its urban renewal and development. Responding to the riskof disasters such as earthquakes directly below Tokyo or in the Nankai
Trough, which would cause immense damage, as well as typhoons andtorrential rains which have become more frequent in recent years, is apressing issue; therefore, the danger of heavily concentrated city areas
must be eliminated as quickly as possible.

Urban development until now has focused on hard aspects like infrastructure development, but a growing priority is “area management” focusing
on private sector-led promotion of resident-company interaction, events tocreate community dynamism, and other “soft” aspects in defined areas.
Many times, the private sector, which is key, acts in the form of area management organizations.
Examples include events using public roads and various other initiatives toenhance community energy, which can be expected to increase population inflow, stimulate commerce through customer attraction and solidify
regional branding. These also make it easier for residents and employees
to work together in times of disaster.

Tokyo’s disaster risk is also a weakness from the perspective of enhancing
its international competitiveness. The public and private sectors must work
together to enhance disaster preparedness functions, ensure business
continuity as well as pursue urban development that is resilient enoughto disasters that a certain level of economic activity can continue even if
a disaster does occur, all so that overseas companies will feel secure in
expanding to Japan.

The Ministry of Land, Infrastructure, Transport and Tourism is supporting thistrend in ways such as formulating an Area Management Promotion Manualin 2008. Also, in 2020, a support system for the “Comfortable City That
Induces Walking” initiative was formulated that, together with the system
for roads that enhance convenience for pedestrians (“hokomichi”) established the same year, is expected to facilitate the use of public spaces.

To that end, by promoting quick, consistent urban renewal, the industry
must work to develop high-spec buildings with BCP functions such as
anti-inundation measures, vibration-controlling/seismically-isolated structures, and emergency power generation equipment, and the ability toserve as regional disaster shelters, taking in nearby stranded commuters.
In conjunction with these hard aspects, efforts to enhance soft aspects
such as forming a cooperative disaster-mitigating structure are no lessessential.

Efforts to Secure Financial Resources
One issue when promoting area management activities is the securingof stable sources of funds. Relying on the involved companies, individuals
and organizations to pay for it themselves casts doubt on activity continuity. It is especially necessary to solve the freeloader problem through whichsome people benefit from the area management activities without bearing
the necessary costs. In order to address this problem, the Japanese government, using the example of cases of Business Improvement Districts(BIDs), which are used overseas, as a reference, introduced an Area
Management Expense System* in the revised Regional Revitalization
Act enacted in June 2018 through which real estate owners within adesignated area provide funding, which is distributed to the area management groups and others. The Ministry of Land, Infrastructure, Transport
and Tourism also formulated guidelines on frameworks to secure financial
resources for private-sector urban development activities last August.

* Area Management Expense System:
A public-private system that, with the consent of at least two-thirds of the companies, allows municipalities to collect funding from the local beneficiaries (companies) and grant it to area management organizations for regional revitalization activities.

013
Real Estate in Japan• Real Estate in Japan •MAJOR REAL ESTATE MARKET TRENDS(2021)REAL ESTATE‑RELATED DATA

The impact of COVID-19 continued to be felt significantly in 2021. A state of emergency was
declared for long periods and the Japanese economy continued to face difficult conditions.
Meanwhile, diversification of values, advancement of DX and other structural changes that
had been underway from before the pandemic accelerated significantly, and with such theenvironment surrounding the real estate industry and roles which are required have seen
dramatic change.

LAND PRICE TRENDS
The land prices published in 2021 showed that the average for all-usage land decreased for the first time in six
years, while residential land fell for the first time in five years and commercial land for the first time in seven years.
Land prices were weak overall due to the impact of COVID-19 and such, but the degree of change in trends differed
by region and usage. Year-on-year change was greater for commercial land than for residential land and also forthe three major metropolitan areas than for less urban areas. Thanks in part to economic measures and othergovernment initiatives, the slump in land prices is small compared with that published in 2009 and 2010 following
the global financial crisis.

Source: Ministry of Land, Infrastructure, Transport and Tourism

OFFICE MARKETThe office building markets of major Japanese cities in 2021 saw the overall vacancy rate trending upwards.
The vacancy rate in Tokyo’s five central wards was increasing up until October, but has been decreasing sinceNovember. The average rent has been decreasing for 17 consecutive months as of December.
While working remotely has become widespread during the pandemic, the importance of in-person communication and such is being reaffirmed and there is a global movement of returning to offices. Offices need to
become places for not only doing office work but also generating innovation, improving productivity and allowing versatile and flexible work styles.

Source: Miki Shoji Co., Ltd.

HOUSING MARKET (HOUSING STARTS AND NEW APARTMENTS)
Housing starts in 2021 increased by 5.0% year on year to 856,484 units, increasing from the previous year
for the first time in five years. By category, owned houses increased 9.4% year on year, rentals increased
4.8%, condominiums increased 6.1%, stand-alone houses increased 7.9% and condominium housing overall
increased by 1.5%.
Furthermore, new condominium supply in the Tokyo metropolitan area increased 23.5% year on year to 33,636
units, recovering above 30,000 units for the first time in two years and also exceeding the level in 2019 before
the pandemic (31,238 units). The annual average contract rate for initial month was 73.3%, climbing to the
70% range for the first time in six years. Supply in the Kinki region increased 24.7% to 18,951 units and theaverage contract rate for initial month was 69.8%, down 1.9% from the same period last year.


Source: Ministry of Land, Infrastructure, Transport and Tourism; Real Estate Economic Institute Co., Ltd.

014
Real Estate in Japan• Real Estate in Japan •REAL ESTATE‑RELATED DATALAND PRICESLand Prices
1History of Year-on-Year Changes in Published Land Prices

(unit: %)All usage

Commercial

Residential

Study Year
1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Usage, etc.
Tokyo metropolitan area
1.7
6.6 -2.9 -6.8 -5.8 -5.9 -5.6 -4.7 -3.2 -0.9
3.6
5.5 -4.4 -4.9 -1.7 -1.6 -0.7
0.7
0.5
0.6
0.7
1.0
1.3
1.4 -0.5
Osaka metropolitan area
3.0 56.1 -1.9 -6.1 -6.7 -8.6 -8.8 -8.0 -5.2 -1.6
1.8
2.7 -2.0 -4.8 -2.4 -1.3 -0.9 -0.1
0.0
0.1
0.0
0.1
0.3
0.4 -0.5
Nagoya metropolitan area
1.6 20.2 -4.0 -1.8 -1.9 -4.4 -5.6 -4.9 -3.3 -1.3
1.7
2.8 -2.8 -2.5 -0.6 -0.4
0.0
1.1
0.8
0.8
0.6
0.8
1.2
1.1 -1.0
3 major metropolis average
2.0 22.0 -2.8 -5.9 -5.6 -6.5 -6.5 -5.7 -3.7 -1.2
2.8
4.3 -3.5 -4.5 -1.8 -1.3 -0.6
0.5
0.4
0.5
0.5
0.7
1.0
1.1 -0.6
Local average
2.4 11.4 -0.3 -2.3 -2.8 -4.0 -5.1 -5.7 -5.4 -4.2 -2.7 -1.8 -2.8 -3.8 -3.6 -3.3 -2.5 -1.5 -1.1 -0.7 -0.4 -0.1
0.2
0.5 -0.3
National average
2.2 17.0 -1.6 -4.1 -4.2 -5.2 -5.8 -5.7 -4.6 -2.7
0.1
1.3 -3.2 -4.2 -2.7 -2.3 -1.6 -0.6 -0.4 -0.2
0.0
0.3
0.6
0.8 -0.4
Tokyo metropolitan area
7.2
4.8 -15.4 -9.6 -8.0 -7.4 -5.8 -4.5 -2.5
1.0
9.4 12.2 -6.1 -7.3 -2.5 -1.9 -0.5
1.7
2.0
2.7
3.1
3.7
4.7
5.2 -1.0
Osaka metropolitan area
5.0 46.3 -15.3 -11.3 -11.0 -11.3 -10.2 -8.8 -5.0
0.8
8.3
7.2 -3.3 -7.4 -3.6 -1.7 -0.5
1.4
1.5
3.3
4.1
4.7
6.4
6.9 -1.8
Nagoya metropolitan area
2.7 22.4 -12.7 -7.3 -5.6 -8.1 -8.0 -6.0 -3.3
0.9
7.8
8.4 -5.9 -6.1 -1.2 -0.8 -0.3
1.8
1.4
2.7
2.5
3.3
4.7
4.1 -1.7
3 major metropolis average
5.8 18.6 -14.8 -9.6 -8.3 -8.5 -7.1 -5.8 -3.2
1.0
8.9 10.4 -5.4 -7.1 -2.5 -1.6 -0.5
1.6
1.8
2.9
3.3
3.9
5.1
5.4 -1.3
Local average
2.6 15.4 -5.5 -7.0 -7.0 -8.1 -8.7 -8.7 -7.5 -5.5 -2.8 -1.4 -4.2 -5.3 -4.8 -4.3 -3.3 -2.1 -1.4 -0.5 -0.1
0.5
1.0
1.5 -0.5
National average
3.8 16.7 -10.0 -8.0 -7.5 -8.3 -8.0 -7.4 -5.6 -2.7
2.3
3.8 -4.7 -6.1 -3.8 -3.1 -2.1 -0.5
0.0
0.9
1.4
1.9
2.8
3.1 -0.8
Tokyo metropolitan area
2.4
7.2 -5.0 -7.4 -6.4 -6.4 -5.9 -4.9 -3.2 -0.7
4.6
6.7 -4.7 -5.4 -1.9 -1.7 -0.6
0.9
0.9
1.1
1.3
1.7
2.2
2.3 -0.5
Osaka metropolitan area
3.2 53.9 -4.0 -6.9 -7.4 -9.1 -9.1 -8.3 -5.4 -1.4
2.7
3.4 -2.3 -5.3 -2.7 -1.5 -0.9
0.2
0.3
0.8
0.9
1.1
1.6
1.8 -0.7
Nagoya metropolitan area
1.7 19.9 -5.6 -3.0 -2.8 -5.3 -6.1 -5.3 -3.5 -1.0
2.8
3.8 -3.5 -3.3 -0.8 -0.6 -0.1
1.2
0.9
1.3
1.1
1.4
2.1
1.9 -1.1
3 major metropolis average
2.5 22.1 -4.8 -6.6 -6.1 -6.9 -6.8 -5.9 -3.9 -0.9
3.8
5.3 -3.8 -5.0 -2.0 -1.5 -0.6
0.7
0.7
1.1
1.1
1.5
2.0
2.1 -0.7
Local average
2.3 11.7 -1.2 -3.4 -3.8 -5.0 -6.0 -6.5 -6.0 -4.6 -2.8 -1.8 -3.2 -4.2 -3.9 -3.6 -2.8 -1.7 -1.2 -0.7 -0.3
0.0
0.4
0.8 -0.3
National average
2.4 16.6 -3.0 -4.9 -4.9 -5.9 -6.4 -6.2 -5.0 -2.8
0.4
1.7 -3.5 -4.6 -3.0 -2.6 -1.8 -0.6 -0.3
0.1
0.4
0.7
1.2
1.4 -0.5

Source: Public Notice of Land Prices, Ministry of Land, Infrastructure, Transport and Tourism.
Notes: 1. F or each year, the change rate is the simple average of standard land price change rates since the previous year.
2. Land areas are divided as follows
Tokyo metropolitan area: All existing city areas and suburban improved areas according to the Tokyo Metropolitan Area Improvement Law.
Osaka metropolitan area: All existing city areas and suburban improved areas according to the Kinki Metropolitan Area Adjustment Law.
Nagoya metropolitan area: All city improvement areas according to the Chubu Metropolitan Area Adjustment Law.

History of Standard Land Price and Nominal GDP with 1983 as 100
240

National

220

National commercial areas

National usage and areas200

National residential areas

Nominal GDP
178.0

180
160
140
120
100

93.9

80

85.3

60

63.8

50
1986 87

350

88

89

90

91

92

93

94

95

96

97

98

99 2000 01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Tokyo Metropolitan Area

300

Tokyo commercial areas

Tokyo usage and areas

Tokyo residential areas

Nominal GDP

250

200
200.0
150
104.3
102.7

100

90.9
50
1986 87

88

89

90

91

92

93

94

95

96

97

98

99 2000 01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Source: P ublic Notice of Land Prices by the Ministry of Land, Infrastructure, Transport and Tourism; Annual Report on National Accounts, Annual Report on Prefectural Accounts by the Cabinet Office.
Notes: 1. The Tokyo Metropolitan Area GDP represents the sum of nominal prefectural GDP of Tokyo, Kanagawa, Saitama and Chiba Prefectures.
2. The nominal GDP and the Tokyo Metropolitan Area GDP represent figures for respective fiscal years.
3. The nominal GDP figures were calculated based on 93SNA (fixed-base method) until 1993 and based on 08SNA (chain-linking method) for 1994 and after.

015
Real Estate in Japan• Real Estate in Japan •REAL ESTATE‑RELATED DATAOFFICE

Offices
History of Floor Space for Launched Office Construction
2,500 (ha)2,452National
Tokyo metropolitan area
Osaka metropolitan area

2,000

1,500
1,510
1,000

500

1,097

907

817

832

245

392

0
1985

291 308

335

90

91

2000

01

170
95

90

755

808

227

289

358

85

75

75

02

03

04

683

488

793

776

267

739

858

706

388

367

264

113

246
120

86

97

119

05

06

07

08

09

612

555

583

250

240

63

259
60

10

11

12

65

627

619

612

669

668

609

652

608

293

270
60

207

57

220
84

161

16

17

186

210

221

69
13

80

74
15

14

73
18

134
19
20
（fiscal year）

Source: Prepared using Annual Statistical Report on Building Construction by Ministry of Land, Infrastructure, Transport and Tourism.
Notes: 1. This is a compilation of offices by usage that have filed construction reports based on Article 15-1 of the Building Standards Law.
2. Lump presentation of the scheduled construction start month in the filed construction report.
3. Tokyo metropolitan area: Tokyo, Kanagawa, Chiba and Saitama; Osaka metropolitan area: Osaka, Kyoto and Hyogo.

History of Supply Volume of Major Office Buildings in 23 Wards of Tokyo
240 (10,000m²)

Supply quantity (actual)

210

216

Supply quantity (planned)
180
179

175

150

154

145

141

120

125

119

90

121

109

99

97

91

60

120

117

119

74

86

85

77

72

93

87

85

69

65

61

58

49

30

36

0

1996 9798

99 2000 01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

Source: Mori Building, Market Trends Survey for Large-Scale Office Buildings in Tokyo’s 23 Wards (published May 2021).
Notes: 1. S tudy covers new major office buildings with total office floor areas of at least 10,000m² in the 23 wards of Tokyo.
2. S upply indicates the net supply of office floor area in major office buildings excluding that for non-office uses such as stores, residences and hotels.

016
Real Estate in Japan

20

21

22

23

24

25
(year)

• Real Estate in Japan •REAL ESTATE‑RELATED DATAOFFICE

History of Building Vacancy and Floor Area (Stock)
Office floor area (national, left scale)
90,000 (ha)Office floor area (Tokyo area, left scale)
Office vacancy (5 central wards of Tokyo, right scale)

80,00070,00069,50962,37560,00071,61473,36374,81580,277
78,150 79,158
76,434 77,303

81,442 82,557

84.22790,319 90,597
88,090 88,955 89,562 89,936
87,115 87,646
85,233 86.023 86,144 86,730

64,341

10
9.01

8.91
50,00037,037

7.34

6.14
5.17

23,190

4.11

6.10

5.04

0

4.03
2.89

13,444
7,900

10,1181980 86

0.39

4.49

4.72

4.22

4.03

3.77

5

5.47

3.17
10,0008.67

7.36

30,00020,0008.09

8.12

48,45640,00015 (%)

3.61

2.65

3.12
1.88

1.55

17,985 18,632 19,711 20,236 20,640 20,962 21,389 21,578 21,893 22,296 22,649 22.994 23,385 23,922 24,201 24,443 24,619 24,799 24,936 25,117 25,309 25,465 25,781 25,900 26,040 26,152

90

95

96

97

98

99 2000 01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

0

20
(year)

Source: Miki Shoji Co., Ltd., “Office Data,” Summary of Investigation on Fixed Asset Price, etc. Issued by the Ministry of Internal Affairs and Communications.
Notes: 1. F igures as of December each year.
2. (1) S tock is the total floor area of wooden house offices and banks (as well as shops starting from 1997) and non-wooden house offices, stores and department stores. However, stores arealso included in wooden houses from 1997.
(2) The stock is as of January 1 of each year.
(3) Tokyo area as pertains to stock: Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture.

History of Office Floor Space in the Wards of Tokyo[Area]
Floor space(100 thousand m²)
900[Increase Rate]
18 peripheral wards
Shinjuku and Shibuya Wards
3 central wards

800
284
700

288

290

293

259

5 central wards
3 central wards

18 peripheral wards
Wards
299

304

300

303

309

312

314

315

321

323

324

12

245

146

400
300

326

14

600
500

323

Year-on-year rate of increase
(%)
16
327
326
327
326

73
292

99
359

119

121

123

390

391

397

124

398

124

410

126

429

128

438

126

441

126

446

127

452

127

128

128

128

132

134

134

133

134

134

135

135

476

480

488

10
8

457

459

458

461

459

459

466

471

471

6
4

200

2

100

0

0

-2

90

95

99

2000

01

02

03

04

05

06

07

08

09

10

Source: Tokyo Land 2020 (Land Data).

017
Real Estate in Japan

11

12

13

14

15

16

17

18

19

20
(year)

• Real Estate in Japan •REAL ESTATE‑RELATED DATAOFFICE

History of Office Building Vacancy Rates
14 (%)

Tokyo
Osaka

Metropolitan areas

12

Nagoya

10
8
6

6.33

4

5.64
4.53

2
0
1990

95

20 (%)

99

2000

01

02

03

04

05

06

SapporoSendai

Local city areas

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Yokohama
Fukuoka

18
16
14
12
10
8
6

6.59

4

4.77
4.53

2

2.61

0
1990

95

99

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Source: Miki Shoji Co., Ltd.,“Office Data.”
Note: Figures as of December each year.

History of Asking Rent
45,000 (yen/tsubo)

Tokyo
Osaka

Metropolitan areas

40,000

Nagoya35,00030,00025,00020,59620,00015,00012,008
11,796

10,000
5,000
0
1990

95

99

20,000 (yen/tsubo)

2000

01

02

03

04

05

06

07

SapporoSendai

Local city areas

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Yokohama
Fukuoka

15,00012,398
11,177

10,000

9,547
9,272

5,000

0
1990

95

99

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21
(year)

Source: Miki Shoji Co., Ltd.,“Office Data.”
Notes: 1. The areas covered in Tokyo are Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward, and Shibuya Ward.
2. The buildings covered are buildings with a standard floor space of 100+ tsubo in Tokyo and buildings with a total floor space of 1,000+ tsubo in Osaka, 500+ tsubo in Nagoya, 100+ tsubo
in Sapporo, 300+ tsubo in Sendai, 500+ tsubo in Yokohama, and 1,000+ tsubo in Fukuoka.

018
Real Estate in Japan• Real Estate in Japan •HOUSING, HOUSING LOTS
AND CONDOMINIUM

REAL ESTATE‑RELATED DATA
Housing, Housing Lots and Condominium
History of Housing Starts
2,000 (thousand units)

1,665<-0.4>
767(46.1)

1,500

1,485
<-4.9>
564(38.0)

1,251
<3.6>
544
(43.5)

1,213<-1.1>
418(34.5)

1,000

37
(2.2)
20
(1.6)

500

Rental house
Issued house
Condominium housing
Owned house387(23.2)

12
(1.0)
345
(23.2)

227(18.1)
474(28.5)

460(36.8)

551(37.1)

11
(0.9)
346
(28.5)

438(36.1)

1,173<-3.3>
442(37.7)

10
(0.8)
344
(29.3)

1,146<-2.4>
455(39.7)

1,174
<2.5>
459
(39.1)

1,193
<1.7>
467
(39.2)

1,249
<4.7>
518
(41.5)

1,285
<2.9>
538
(41.9)

10
(0.8)

8
(0.7)

9
(0.8)

9
(0.7)

9
(0.7)

316
(27.6)

334(28.4)

349(29.3)

370(29.6)

383(29.8)

377(32.1)

366(31.9)

373(31.8)

367(30.8)

353(28.2)

356(27.7)

01

02

03

04

05

06

1,036
<-19.4>431(41.6)

1,039
<0.3>
445
(42.8)

10
(1.0)

11
(1.1)

283
(27.3)

273(26.2)

775<-25.4>311(40.2)
13(1.7)
164(21.1)

819
<5.6>
292
(35.6)
7
(0.8)

841
<2.7>
290
(34.4)
8(0.9)

212(25.9)

239(28.4)

893
<6.2>
321
(35.9)
6(0.7)
250(28.0)

312(30.1)

311(29.9)

287(37.0)

309(37.7)

305(36.2)

317(35.4)

07

08

09

10

11

12

987
<10.6>
370(37.5)
5(0.5)
259(26.3)

353(35.7)

880<-10.8>358(40.7)

921
<4.6>
384
(41.7)

974
<5.8>
427
(43.8)

946<-2.8>
410(43.4)

942<-4.2>
396(42.1)

883<-6.2>
335(37.9)

812<-8.1>
303(37.3)

8
(0.9)

6
(0.6)

6
(0.6)

6
(0.6)

7
(0.8)

6
(0.7)

236
(26.8)

247(26.8)

249(25.6)

248(26.2)

255(27.1)

260(29.4)

278(31.6)

284(30.8)

292(30.0)

282(29.8)

283(30.0)

283(32.0)

14

15

16

17

18

19
20
(fiscal year)

7
(0.9)
239
(29.4)
263(32.4)

0
1985

90

95

2000

13

Source: Statistics on Construction-started Dwelling Houses issued by MLIT.
Notes: 1. O wner-occupied housing is housing that the owner constructs for the purpose of residing there. Leased housing is housing that the owner constructs for the purpose of leasing it. Issued
housing is housing that a company, government agency, school, or the like constructs for the purpose of having its employees, staff, teachers, etc., reside there. Condominium housing ishousing constructed for selling as ready-built housing or lots.
2. There may be discrepancies in the totals due to rounding.
3. The figures in parentheses represent the breakdown by usage (%). The figures on the graph in parentheses are year-on-year variation (%).

History of Floor Space per Unit for New Housing Starts (by Overall Average and Use)
Overall average

Owned house
Rental house

150 (㎡/unit)
136.8

127.4
100
88.5
83.1
79.8
50

83.7

137.4

93.0
90.6

80.8
71.3
70.1

46.8

45.1

139.0

97.5
96.9

137.0

135.8

134.8

134.2

133.8

98.1

96.1

95.0

95.9

93.8

92.7

89.4
70.8

88.5
68.9

85.4
67.4

48.8

47.4

71.7

68.9

90.3
72.1

53.0

51.4

50.0

52.3

46.7

133.3

93.8
84.5
66.8
46.0

131.6

95.8
85.3
63.6
45.5

130.2

127.2

125.9

125.5

124.9

125.0

91.5

95.3

93.6

93.1

92.4

92.2

83.1
65.7

87.4

90.2
69.5

90.0
69.9

88.9

88.4

50.4

50.8

70.6
51.1

51.0

45.5

53.8

123.6

80.5

48.0

Issued house
Condominium housing

122.7

121.8

120.5

91.0
80.8

90.1
80.1

90.8

88.6

84.1

82.1

65.2

67.2

49.3

14

119.7

118.8

117.8

88.5

88.9

87.9

80.4

82.7

81.6

75.2

73.5

60.6

66.7

48.1

46.9

46.4

46.1

47.5

15

16

17

18

19
20
(fiscal year)

59.3
45.6

0
1985

90

95

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

Source: Statistics on Construction-started Dwelling Houses issued by MLIT.

History of Floor Space per Unit for New Housing Starts (Tokyo Area: by Overall Average and Use)
Overall average

Owned house
Rental house

150 (㎡/unit)

120.1

125.9

125.3

126.8

125.2

125.0

123.7

124.0

124.3

124.8

123.6

123.2

Issued house
Condominium housing

119.9

119.4

119.1

118.4

118.8

118.2

118.3

117.0 116.4

89.8

88.2
80.1

87.8
79.9

86.2
79.0

86.1
78.0

84.4
74.4

82.0
72.1

85.3
71.0

66.0

68.9

70.6

61.1

59.6

115.7

115.0

84.1

83.2

69.9

70.5

83.0
81.3
75.8 71.2
73.0

114.7

100

83.9
81.9
81.9
50

73.7
71.1
66.9

44.7

43.3

1985

90

92.6
84.9
85.3 88.4
65.5
70.4
55.6
52.2

92.4
85.2
58.0
50.1

90.9
81.9
63.5

88.8
80.0
60.8

90.7
80.4
64.8

88.5
77.9
63.0

88.0

89.7

77.3

78.0

63.3

55.8

84.6
74.3

77.0

51.6

46.4

67.0

71.3

67.8

59.7

56.3

46.0

44.7

43.3

42.5

41.9

41.6

41.9

43.2

45.2

45.7

46.2

46.0

44.0

42.7

41.4

40.5

40.7

43.7

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19
20
(fiscal year)

41.5

0
95

2000

01

Source: Statistics on Construction-started Dwelling Houses issued by MLIT.
Notes: Tokyo area = Tokyo, Kanagawa, Saitama, and Chiba prefectures

019
Real Estate in Japan• Real Estate in Japan •HOUSING, HOUSING LOTS
AND CONDOMINIUM

REAL ESTATE‑RELATED DATA
History of Housing Investment

25 (trillion yen) 26.0

26.8

Nominal housing investment (left scale)

10 (%)

Nominal housing investment/nominal GDP (right scale)

9
8

22.4

20

15

5.8
5.2

4.7
15.6

4.2

7

21.9
20.7

4.0

20.0

19.9

20.2

20.1

20.5

20.3
17.9

3.9

3.8

3.9

3.8

18.1

3.9
3.4

3.5

15.4

2.9

2.9

3.0

14.1

14.4

14.7

3.1

09

10

11

12

17.3
3.4

16.3

16.9

17.8

3.1

3.2

3.3

14

15

16

17.8

3.3

6
5

17.1

4
3.9

3.8

3.1

3
2

10

1
1985

90

95

2000

01

02

03

04

05

06

07

08

13

17

18

19
20
(fiscal year)

Source: P repared from the Annual Report on National Accounts 2020.
The cabinet office’s “National Economic Statistics Report (2000 version)” was used for 1985-1989 and the “National Economic Statistics Report (2015 version)” was used for 1994 and after.
Note: R evisions to the count were applied by backtracking the data from 1992 onward, thus the premise of these figures differs from that of 1989 and earlier.

History of Housing Construction Permits and Area of Approved Land Readjustment Projects
Area of approved land readjustment projects
Area of housing construction permits

8,000 (ha)

6,000
5,098
4,000

4,463

4,669

5,325
5,215

4,200

4,860
3,849
3,299

4,145

3,665
3,378 3,183

3,090

2,000

90

95

98

99

2000

3,312

3,448

3,133

2,757

2,000

1985

3,025

3,424

01

1,671
02

1,258
1,368
03

04

2,343

1,065
841

792

05

06

898
792

07

08

09

3,029

2,815
2,639

2,723

1,050
611
11

893
12

2,585

2,618 2,596

2,537

1,693

581
10

3,250

13

14

2,369

682

600

744

824

15

16

17

18
19
(fiscal year)423

Source: Prepared from "the Land Readjustment Annual Report" (2020 version) by MLIT.
Notes: 1. The construction permit is the approval granted primarily for the objective of building a house based on the City Planning Law.
2. The area of approved land readjustment projects represents the total for individuals, joint projects, associations, public bodies, government agencies, the Urban Development Corporation(present Urban Renaissance Agency), Japan Regional Development Corporation (present Organization for Small & Medium Enterprises and Regional Innovation, JAPAN and Urban
Renaissance Agency) and the Local Housing Supply Corporation.

020
Real Estate in Japan• Real Estate in Japan •HOUSING, HOUSING LOTS
AND CONDOMINIUM

REAL ESTATE‑RELATED DATA
History of New Condominium Sales
100,000 (units)
95,63580,00089,25684,88588,516

83,18385,429

Tokyo metropolitan area

Kinki metropolitan area

84,14874,46360,00061,02140,00040,31220,00041,481

38,69839,73736,55239,08731,25828,42524,841

1985

90

56,47831,857

2000

01

02

03

04

44,49445,602

44,91336,37633,06430,14630,21922,74495

44,53543,73305

06

07

19,784

21,71609

10

08

20,21911

23,266

12

24,691

13

40,44935,77235,89837,132

18,814

18,93018,676

19,56020,958

14

15

16

17

18

31,23818,042

19

33,63627,22815,19520

18,95121(year)

History of New Condominium Annual Contracted Rates
Tokyo metropolitan area

100 (%)
90.8
84.1
80

89.6 88.8

81.4

72.6

1985

91.7

90.3
86.8

88.0
85.0

90.1
86.0

91.4
89.3

93.5

90.9

89.7

90.0

84.6

83.8
86.3

83.8

89.4

87.4 88.1

91.9
90.0

91.7
91.3

90.2
87.6

78.3
78.0

88.4
86.9

80.2

Kinki metropolitan area

89.1

86.8

88.1

88.1

87.0
82.7

83.2
83.5

83.3
77.5

77.9

78.5

18

19

20

74.1

90

95

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

21
(year)

History of Average Price for New Condominium Units
7,000 (10,000 yen)

Tokyo metropolitan area

6,000

6,123

5,000

5,279
4,644

4,000

4,148

3,000

3,447
2,683

2,000

Kinki metropolitan area

5,908

4,034

4,026

4,003

4,069

4,104

4,108

3,243

3,188

3,237

3,165

3,177

3,164

2000

01

02

03

04

05

4,775

4,535

4,200

4,716

4,578

4,929

5,871

5,980

5,518

5,490

3,788

3,919

3,836

3,844

3,866

15

16

17

18

19

6,084

6,260

5,060
4,562

4,540

3,380

3,478

3,513

3,411

3,452

3,490

3,438

3,496

3,647

06

07

08

09

10

11

12

13

14

4,181

2,101

1985

90

95

20

Source: Prepared using Condominium Market Trends for the Tokyo Metropolitan Area and Condominium Market Trends for the Kinki Metropolitan Area issued by the Real Estate Economic Institute Co., Ltd.
Note: Tokyo metropolitan area: Tokyo, Kanagawa, Chiba and Saitama; Kinki metropolitan area: Osaka, Hyogo, Kyoto, Nara, Shiga and Wakayama

021
Real Estate in Japan

21(year)

• Real Estate in Japan •HOUSING, HOUSING LOTS
AND CONDOMINIUM

REAL ESTATE‑RELATED DATA
Number of For-sale Condominiums in Stock Nationwide(10,000 units)
700

Number of new units supplied (annual, left scale)
Cumulative units (year-end, right scale)
545.1
505.7
447.1
406.3
351.9
295.7
252.0

20 (10,000 units)151.2 162.0

15

199.7

562.1

571.3 579.6

589.7 601.2

613.2 623.3 633.5

644.1 654.7

665.5 675.3

600
550

528.4

500

465.7 485.0

450

427.2

400

368.7 386.0

350

315.5 333.6

300

263.6 277.2

250

216.1 234.7

200

172.7 184.9

150

140.0

10

650

100

5

50

0

11.3 11.2 10.8 10.7 12.3 14.8 16.4 18.6 17.3 11.7 13.6 19.0 20.0 18.2 18.4 16.9 17.3 20.3 20.9 19.9 18.6 19.3 20.5 22.7 16.7 17.0

9.2

8.2

10.2 11.6 12.1 10.3 10.3 10.6 10.7 11.0 10.001984 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(year)

Source: Ministry of Land, Infrastructure, Transport and Tourism’s condominium statistics/data (Number of For-sale Condominium Units in Stock)
Notes: 1. N umber of new units supplied is derived from construction start statistics, etc.
2. Cumulative units are estimated based on the cumulative figures for new units supplied, etc. as of the end of each year.
3. Condominiums as described here are buildings at least three stories in height, sold after subdivision, jointly built, steel-reinforced concrete, steel-framed reinforced concrete and steel structured housing.
4. Number of condominium units before 1968 is estimated based on the Ministry of Land, Infrastructure, Transport and Tourism’s figures for public rental housing provided by public housing
corporations.

Number of Condominiums over 30, 40 or 50 Years Old
600 (10,000 units)

500

Over 30 years old and less than 40 years old
Over 40 years old and less than 50 years old

173.7

Over 50 years
400
Over 30 years old= built in or
before 1991:
2,139,000 units

300

172.7

200

Over 40 years old= built in or
before 2001:
4,046,000 units

154.4
126.6

128.6

100
87.5

0

172.7

15.8

Present(end of 2020)

Over 40 years old= built in or
before 1981:
1,033,000 units

105.6
103.3

53.5

After 5 years(end of 2025)

After 10 years(end of 2030)

Over 40 years old= built in or
before 1991:
2,319,000 units

231.9

After 20 years(end of 2040)

Source: Ministry of Land, Infrastructure, Transport and Tourism’s condominium statistics/data (number of condominiums over 30, 40 or 50 years old)
Notes: 1. N umber of condominium units over 50 years old is estimated based on the Ministry of Land, Infrastructure, Transport and Tourism’s figures for public rental housing over 50 years old provided by public housing corporations.
2. Number of condominium units over 30, 40, or 50 years old after 5, 10, or 20 years is estimated based on condominium stock units as of the end of 2020, estimated based on construction
start statistics, etc., and the number of removed units according to the Ministry of Land, Infrastructure, Transport and Tourism.

022
Real Estate in Japan• Real Estate in Japan •HOUSING, HOUSING LOTS
AND CONDOMINIUM

REAL ESTATE‑RELATED DATA
Progress in Earthquake-Proofing Housing
2003
No earthquake resistanceApprox. 11.5 million units
Before1981 After
1982
Earthquake-resistantApprox.
7.0 million units
Post-1982 earthquake resistanceApprox. 28.5 million units

Total units
Earthquake-resistantNo earthquake resistanceApprox. 47.0 million units
Approx. 35.5 million units
Approx. 11.5 million units*2003 estimates
Approx. 75% earthquake-proofed

Target2008
No earthquake resistanceApprox. 10.5 million units

Earthquake-resistantApprox.
6.5 million units

Before1981 After
1982

Total units
Earthquake-resistantNo earthquake resistanceApprox. 49.5 million units
Approx. 39.0 million units
Approx. 10.5 million units*2008 estimates
Approx. 79% earthquake-proofed

Post-1982 earthquake resistanceApprox. 32.5 million units

Largely resolve lack ofearthquake resistance inresidences by 2030

*Target:Positioned in Basic Plan for Housing(approved by Cabinet meeting in March 2021)

2013
No earthquake resistanceApprox. 9.0 million units
Earthquake-resistantApprox.
6.0 million units

Before1981 After
1982

Total units
Earthquake-resistantNo earthquake resistanceApprox. 52.0 million units
Approx. 43.0 million units
Approx. 9.0 million units*2013 estimates
Approx. 82% earthquake-proofed

Post-1982 earthquake resistanceApprox. 37.0 million units

2018
No earthquake resistanceApprox. 7.0 million units
Earthquake-resistantApprox.
6.1 million units

Before1981 After
1982
Post-1982 earthquake resistanceApprox. 40.5 million units

Total units
Earthquake-resistantNo earthquake resistanceApprox. 53.6 million units
Approx. 46.6 million units
Approx. 7.0 million units*2018 estimates
Approx. 87% earthquake-proofed* The earthquake-proof ratio of2018 is calculated with an
improvement on the previous
method of estimation

Source: Ministry of Land, Infrastructure, Transport and Tourism’s “Progress in Earthquake-Proofing Housing”

023
Real Estate in Japan• Real Estate in Japan •REAL ESTATE‑RELATED DATAREAL ESTATE TRANSACTIONSReal Estate Transactions
Market Trends for Real Estate Transactions
(Properties for sale that are registered with designated transaction organizations)
1,900,000 (units)

1,896,229

Condominiums
Stand-alone housing
Land
Other

1,800,000
1,700,000
1,600,000

540,837

1,590,118

Reported contracts

1,500,000

420,830
1,237,061

1,200,000

305,881

1,100,000

1,112,158

900,000
800,000

759,464700,000

685,887
587,844
167,354

232,334

607,185
167,665

610,399

623,943638,619

169,314

167,439

174,626

231,728

157,743

176,497

346,871
520,491

288,500

325,595

366,462

513,359

516,826

455,652

479,443

345,127

632,437

188,064
300,335

308,131548,789

232,651465,792

453,145445,743

475,403484,257

488,837

580,476

558,785

533,599

470,675

217,796

199,468

205,378

212,906

162,848

157,733

172,751

178,605

179,289

108,642

115,413

114,440

114,895

123,823

150,540

100,586

103,317

136,110

93,661

130,354

88,124

229,668

538,318

391,585

220,564

210,921559,960

521,737

396,452

384,036

231,531257,686

200,0000

1,144,924

198,326

300,000

100,000

218,395

615,522430,512898,232
855,192

446,131

1,396,662 1,415,071
406,192 395,503

1,213,804

280,197

1,000,000

400,000

502,901

476,025
1,471,786

1,370,163

1,300,000

500,000

459,054441,6311,400,000

600,000

1,693,283

1,370,163
499,864 1,621,352 1,621,702

262,843

289,310

301,696

78,097

79,591

88,59030,69630,56233,29135,50440,60956,87473,91481,352

77,68476,06377,47875,70175,07979,207

86,687

90,341

31,29547,152

87,96230,413

1997

98

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

185,105

107,433

18

187,176

187,517

92,10475,53719
20(fiscal year)

Source: Utilization Status of Designated Transaction Organizations report by the Real Estate Transaction Promotion Center (Public Interest Incorporated Foundation).
Notes: 1. T his is a compilation of registration and contract information of designated transaction organizations.
2. This includes duplicated registrations of general intermediaries.

Number of Contracted Stand-Alone Houses in the Tokyo Metropolitan Area, Average Contracted Price and Building Age(10,000 yen)
5,500

(years)
22

5,000

20

12,5004,500

1810,000

4,000

16

3,500

14

5,000

3,000

12

2,500

2,500

10

2,000

8

Number of contracted properties
Average contracted price
Building age

17,500 (cases)
15,00021.42
14,102

7,500

3,199

0
1997

1998

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
2020
(fiscal year)

Source: Based on “Trends in the Tokyo Metropolitan Area’s Real Estate Transaction Market (Fiscal 2020)” by the Real Estate Information Network for East Japan (Public Interest Incorporated Foundation).
Note: The Tokyo metropolitan area is Tokyo, Kanagawa, Saitama and Chiba prefectures.

Number of Contracted Existing Condominiums in the Tokyo Metropolitan Area, Average Contracted Price and Building Age
40,000 (cases)

Number of contracted properties
Average contracted price
Building age(10,000 yen)
4,500

(years)
22

4,000

20

3,500

18

20,0003,000

1615,0002,500

1410,000

2,000

12

5,000

1,500

10

1,000

8

35,00037,04922.10

30,0003,668

25,000

0
1997

1998

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
2020
(fiscal year)

Source: Based on “Trends in the Tokyo Metropolitan Area’s Real Estate Transaction Market (Fiscal 2020)” by the Real Estate Information Network for East Japan (Public Interest Incorporated Foundation).
Note: The Tokyo metropolitan area is Tokyo, Kanagawa, Saitama and Chiba prefectures

024
Real Estate in Japan• Real Estate in Japan •REAL ESTATE TRANSACTIONS/REAL ESTATE SECURITIZATIONREAL ESTATE‑RELATED DATA
History of Building Lot and Building Transaction Firms
150,000 (firms)
141,680(24.0)

138,524(22.0)

120,000

130,916(19.6)

Individual
127,517(17.6)

126,421(17.3)

125,771(16.8)

123,872(16.3)

122,615(15.8)

122,046(15.3)

122,631(14.8)

123,249(14.3)

123,333(13.7)

123,712(13.1)

124,451(12.6)(76.0)(78.0)(80.4)(82.4)(82.7)(83.2)(83.7)(84.2)(84.7)(85.2)(85.7)(86.3)(86.9)(87.4)

1995

2000

05

08

09

10

11

12

13

14

15

16

17

18

90,000Company

125,638(12.1)

127,215(11.6)(87.9)(88.4)

19

20(fiscal year)

60,00030,0000

Source: Website of the Ministry of Land, Infrastructure, Transport and Tourism.
Notes: 1. F igures represent those as of the end of each fiscal year.
2. The figures in the parentheses indicate the breakdown (unit: %).

Real Estate Securitization
History of Real Estate Securitization
11,000 (billion yen)
2,090

10,50010,000Assets (billion yen)
Cases

9,500
9,000

2,200 (cases)

2,168

2,100
2,000
1,935

1,900
1,800

8,500

1,700

8,884

8,000

1,600

8,273

7,500

1,500

7,000

1,400

6,500

1,329

6,930

5,500
5,000

5,513

1,200
1,069
5,368

1,004
4,830

4,000

3,984

4,394

1,093

1,100
1,000

4,767

744

3,000
2,500

2,778
377

2,000
1,500
500
62 9
1997

1,167
316 26 74

161

98

2000

99

2,541

2,838
381

1,867

1,000

552

518
326

2,195

576

900

4,735
4,116

685

3,500

0

991

5,335

4,500

1,300

1,232

6,000

800
3,937

700
600

3,345

500
400

2,341

300

1,798

200
100
0

01

02

03

04

05

06

07

08

09

10

11

Source: Real Property Securitization in Japan issued by the Ministry of Land, Infrastructure, Transport and Tourism.
Note: R
 eal estate investment corporations are recognized as single investment corporations.
The number of cases from fiscal 2018 onward has not been tallied.

025
Real Estate in Japan

12

13

14

15

16

17

18

19
20
(fiscal year)• Real Estate in Japan •REAL ESTATE‑RELATED DATAINTERNATIONALIZATIONInternationalization
Major Overseas Development Projects Scheduled for Completion in 2022 or Later
Map Country/
no. region

Officedevelopment

Office renovation

Housingdevelopment

Commercial facility
development

Lab rental & Officedevelopment
Data center
development

Mixed-usedevelopment

Logistics facility
development
Hotel operation

City

Project Name

Developer

Operating
costs
Date
(billion yen)

Comments1

UK

LondonWhite City Place Redevelopment Project(Gateway Central Building)

Mitsui Fudosan

2

UK

London8Bishopsgate

Mitsubishi Estate

3

Thailand

Bangkok

One City Centre

Mitsubishi Estate

4

Philippines Manila

Savya Financial Center North Tower

Mitsubishi Estate

5

USA

New York

50 Hudson Yards

Mitsui Fudosan (90% share)

6

India

Bangalore

RMZ Ecoworld 30

Mitsui Fudosan (50% share)

2023 4 buildings, 12 floors, 330,000 m² for lease

7

USA

State of California

Brannan Square

Mitsui Fudosan

2023 3 buildings, GFA 112,000 m²

8Australia

SydneyParkline Place

Mitsubishi Estate2024 39 floors, GFA 65,000 m²

9UK

LondonWarwick Court

Mitsubishi Estate2022 8 floors, GFA 29,000 m²

10Indonesia

Jakarta

Loggia Project

Tokyo Tatemono

2022 20 floors, 498 units, GFA 45,000 m²
2022

2022 11 floors, GFA 32,000 m²
2022 Rebuilding of two office buildings, 51 floors, GFA 85,000 m²
308

2022

2 buildings for offices and commercial use, 61 floors, GFA
116,000 m²

2022 14 floors, 3 buildings, GFA 60,000 m²
4,000

2022 58 floors, GFA 264,000 m²

11

Thailand

ChonburiHarmoniQ Residence Sriracha Expansion
Tokyu Corporation
Project

12

China

XuzhouXuzhou Chengbei Project

Tokyo Tatemono

2022 18 floors, approx. 1,500 units

13

China

YangzhouYangzhou Chengxi Project

Tokyo Tatemono

2022 18 floors, approx. 1,500 units

14

USA

State of California

8th & Figueroa

Mitsui Fudosan

15

VietnamHo Chi Minh

Grand Park Project

Mitsubishi Corporation,
Nomura Real Estate

16

UK

LondonMorello

Mitsubishi Estate

2023

17

Australia

SydneyMAC

Mitsui Fudosan

2023 24 floors, 269 units for sale, GFA 21,000 m²
2023 24 floors, approx. 1,000 units, GFA 130,000 m²

45,000 m² increase of site area, 2 floors, units for lease
increase by 141 units

2022 41 floors, 438 units for lease, GFA 80,000 m²
1,000

2022 More than 10,000 units, GFA 793,000 m²
2 buildings, 25 floors, 338 units for lease, 24,000 m² for
lease

18

VietnamBinh Duong Province

MIDORI PARK The GLORY

Tokyu Corporation,
NTT Urban Development

19

Australia

SydneyOne Sydney Habour Residences One

Mitsubishi Estate2024 72 floors, 315 units

20

Australia

SydneyOne Sydney Habour Residences Two

Mitsubishi Estate2024 68 floors, 322 units

21

China

Jilin Province

Weifengdongyu II

22

China

Jilin Province

Weifengchuxiao

23

Malaysia

Kuala Lumpur

BBCC Project

Marubeni,
Mitsubishi Estate Residence
Marubeni,
Mitsubishi Estate Residence
Mitsui Fudosan

2024 1,400 residential units, 130 commercial lots
2024 2,100 residential units, 50 commercial lots
2024 45 floors, 269 units for lease, GFA 26,000 m²

24

TaiwanTaichung

Mitsui Shopping Park LaLaport TAICHUNG Mitsui Fudosan

2022 GFA 197,000 m², approx. 270 shops,

25

TaiwanTainanMitsui Shopping Park LaLaport TAINAN

Mitsui Fudosan

2022

26

VietnamBinh Duong Province

SORA gardens SC Phase 1

Tokyu Corporation

2023 2 floors, GFA 21,000 m²

27

Taiwan

New Taipei City

Mitsui Outlet Park Taiwan Linkou Phase 2 Mitsui Fudosan

2024 Increase of 90 shops, increase of 80,000 m² GFA

28

USA

State of California

Mission Lock Phase I

Mitsui Fudosan

2023 4 buildings, leased area 105,000 m²

29

USA

State of California

Torrey View

Mitsui Fudosan

2023 4 buildings, leased area 47,000 m²

Mitsubishi Estate2024 GFA 140,000 m² (total)

GFA 80,000 m², approx. 220 shops,
full opening scheduled for 2025

30

USA

State of Virginia

Loudoun County Data Center Campus
Project(2 of 7 buildings)

31

Indonesia

Jakarta

Mega Kuningan Project

Tokyu Land482 units, rental housing, retail, GFA 120,000 m²,
2023 collaboration with organization funded by the Japanese
government

32

Thailand

BangkokWanpaya Thai Project

Tokyu Land2023 412 hotel rooms, office and commercial, GFA 26,000 m²

33

USA

State of Texas

Maple Terrace

Mitsui Fudosan

2023 345 units for lease, office, shops, GFA 101,000 m²

34

ThailandAyutthaya

Wang Noi

Mitsui Fudosan

2022 GFA 90,000 m²

35

Thailand

Chachoengsao Province Bang Pakong

Mitsui Fudosan

2023 GFA 160,000 m²

36

TaiwanTaipei

Mitsui Fudosan

2022 18 floors, 350 rooms, GFA 29,000 m²

Zhongshan Zhongxiao Hotel* Excerpted from materials of various companies. Project names, overviews, etc. are as of the announcement. If the developer is a local subsidiary, the parent company’s name is indicated. Only
Japanese companies are indicated.

026
Real Estate in Japan• Real Estate in Japan •REAL ESTATE‑RELATED DATAUSAINTERNATIONALIZATION

UK

China

TaiwanNear Taipei

New York

Jilin Province

5

21 22

London
1

2

9

27 36

Xuzhou16

Taichung
24

12

Yangzhou
13
30

Tainan25

State of Virginia7

14 28 29

State of California

33

State of Texas

Australia

India

Southeast Asia

Manila, Philippines
4

Near Bangkok, Thailand
3

11 32 34 35

Near Ho Chi Minh, Vietnam
Kuala Lumpur, Malaysia
23

Jakarta, Indonesia
10 31
8

17 19 20

SydneyBangalore
6027
Real Estate in Japan

15 18 26

• Real Estate in Japan •REAL ESTATE‑RELATED DATAOTHERS

OthersValuation of Real Estate in Gross National Assets
Year 1985

Category(unit: trillion yen)

1995 2000 2001 2003 2005 2006 2007 2008 2009 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Gross national assets

4,377

8,738

9,209

9,022

8,963

9,383

9,422

9,288

8,914

8,810

8,839

8,809

9,016

9,572 10,014 10,292 10,589 11,038 11,034 11,361 11,891

Valuation of real estate

1,360

2,505

2,223

2,120

1,959

1,887

1,915

1,955

1,944

1,860

1,821

1,782

1,752

1,754

1,773

1,782

1,812

1,841

1,872

1,912

1,908

(31)

(29)

(24)

(23)

(22)

(20)

(20)

(21)

(22)

(21)

(21)

(20)

(19)

(18)

(18)

(17)

(17)

(17)

(17)

(17)

(16)

Housing

152

380

403

399

399

407

416

422

426

408

404

398

392

404

413

412

412

419

421

431

426

Non-housing buildings

148

245

240

234

229

228

230

231

231

220

218

215

212

216

218

220

221

226

232

237

236

Land
Financial assets

1,060

1,880

1,580

1,487

1,331

1,252

1,269

1,302

1,287

1,232

1,199

1,169

1,148

1,134

1,142

1,150

1,179

1,196

1,219

1,244

1,246

2,593

5,205

5,847

5,760

5,851

6,295

6,278

6,070

5,686

5,706

5,773

5,783

6,018

6,545

6,936

7,195

7,456

7,848

7,788

8,041

8,582

Source: The Cabinet Office’s “National Economic Statistics Report (Benchmark Year: 2000)” was used for 1985 – 1993 and the “National Economic Statistics Report (Benchmark Year: 2015)” was used
for 1994 and after.
Notes: 1. R evisions to the counts were done by tracing back the data from 1992 onward and so the premise of these figures differs from that of 1989 and earlier.
2. The figures in parentheses show the percent of gross national product.

Production by Industry and Gross Domestic Product(unit: billion yen)

1985

1995

2000

2001

2003

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Real estate

30,72853,59757,85557,35457,07058,78260,43660,99861,94362,12262,37062,40862,46963,17963,92364,56864,90865,393

65,23165,65365,908Construction

25,00839,60235,69534,01430,74828,77728,707

27,07825,92324,923

23,464

23,611

23,44725,35026,41627,89429,28130,122

29,84530,45731,861

Manufacturing

91,304 122,431 120,213 112,283 109,599 114,082 114,522

117,970 112,289

94,274 104,979

97,17998,42698,326 101,653 110,094 110,440 113,025 114,706 112,026 106,273

Accommodationand food services—

15,862

16,66016,315

15,654

14,39014,457

14,60013,856

13,445

12,914

12,517

11,95012,523

12,834

12,722

13,89814,245

14,305

13,765

9,500

Finance/Insurance

17,592

26,48026,787

29,17632,42332,35831,414

31,394

26,15924,812

24,49923,324

22,46323,22322,782

23,002

22,262

22,332

22,73422,54023,144

Total for all industries

335,834 517,306 535,696 528,543 524,457 534,950 536,229 540,420 528,343 495,454 505,472 494,826 497,635 505,334 514,630 534,876 542,415 550,565 553,271 553,308 535,607(Reference) GDP

325,402 521,613 535,417 531,653 523,968 532,515 535,170 539,281 527,823 494,938 505,530 497,448 500,474 508,700 518,811 538,032 544,364 553,073 556,293 558,491 538,155

Year

Source: The Cabinet Office’s “National Economic Statistics Report (Benchmark Year: 2000)” was used for 1985 – 1993 and the “National Economic Statistics Report (Benchmark Year: 2015)” was used
for 1994 and after.
Notes: 1. The price indicated by producers is used for the production amounts of each industry. Therefore, they include indirect taxes, imputed interest, etc. and so the totals do not match the grossnational product.
2. The total value also includes government service producers outside of each industry and non-profit private service producers for households.
3. The production amount for the real estate industry also includes imputed rents (imputed rents are the recording of amounts equivalent to rent as the production amount of an individual
proprietorship to the gross production amount based on the judgment that the homeowner is involved in the home leasing business).
4. Revisions to the counts were done by tracing back the data from 1993 onward so the premise of these figures differs from that of 1985 and earlier.

1History of Sales Share by Industry
12 (%)

11.5
10.4

10.1

10

9.5
8.5

8
6

8.6

8.5

8.4

8.8

8.0

7.9

8.9

8.7

8.4

7.7

8.6

8.9

Construction
Real estate

9.1

9.4

9.7

Land transport
Steel

4
2.5

2.6

2.2
1.3

2.3
1.4

2.4
1.5

05

06

07

08

2003

2005

2006

2.3
2.3

0.9

1.0

1.2

01

03

2000

2001

2.3
2.3
1.1

0.9

1985

95

2000

Fiscal Year

1985

1995

All
industries

105,907 148,470 143,503 133,821 133,467(100.0)(100.0)(100.0)(100.0)

2,153

3,402

2,991

3,186

(2.0)

(2.3)

(2.1)

8,205

17,003

(7.7)
1,689

0

2.3

2.4

2.1

2.7

2.5

2.5
2.5

2.0
1.7
1.6

2

2.6

2.8

3.0

2.8

3.0

2.8

3.0

3.1

2.3

2.4

2.4

2.7

2.6

2.8
2.8

3.0

2.6

2.8

2.6

2.8

2.9

1.1

1.3

1.3

1.2

1.2

1.2

1.2

1.0

1.0

1.1

1.0

09

10

11

12

13

14

15

16

17

18
19
(fiscal year)

2014

2015

2016

2017

3.0

(unit: 10 billion yen)

Real estate
Construction
Steel
Land
transport

2007

2008

2009

2010

2011

2012

2013

2018

2019

150,812 156,643

158,017 150,821 136,802

138,574

138,105

137,541

140,916 144,784

143,153 145,576

154,414 153,521

148,189(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)(100.0)

3,363

3,450

3,386

3,709

3,867

4,098

3,663

3,571

3,268

3,770

3,698

3,938

4,298

4,343

4,653

4,538

(2.4)

(2.5)

(2.3)

(2.2)

(2.3)

(2.6)

(3.0)

(2.6)

(2.6)

(2.4)

(2.7)

(2.6)

(2.8)

(3.0)

(2.8)

(3.0)

(3.1)

14,455

13,935

12,746

12,886

13,49913,502

12,62812,070

11,13010,945

11,49912,25012,851

12,271

12,897

14,112

14,495

14,332(11.5)(10.1)(10.4)

(9.5)

(8.5)

(8.6)

(8.5)

(8.4)

(8.8)

(8.0)

(7.9)

(8.4)

(8.7)

(8.9)

(8.6)

(8.9)

(9.1)

(9.4)

(9.7)

1,575

1,246

1,222

1,294

1,841

1,986

2,191

2,252

1,572

1,821

1,806

1,627

1,705

1,773

1,652

1,507

1,668

1,720

1,553

(1.6)

(1.1)

(0.9)

(0.9)

(1.0)

(1.2)

(1.3)

(1.4)

(1.5)

(1.1)

(1.3)

(1.3)

(1.2)

(1.2)

(1.2)

(1.2)

(1.0)

(1.0)

(1.1)

(1.0)

1,804

3,352

3,303

3,334

3,399

3,514

4,222

3,980

3,603

3,212

3,302

3,857

4,116

3,929

4,299

4,067

4,024

3,960

4,366

4,366

(1.7)

(2.3)

(2.3)

(2.5)

(2.5)

(2.3)

(2.7)

(2.5)

(2.4)

(2.3)

(2.4)

(2.8)

(3.0)

(2.8)

(3.0)

(2.8)

(2.8)

(2.6)

(2.8)

(2.9)

Source: Prepared using the Monthly Finance Review: Annual Special on For-Profit Corporation Statistics issued by the Ministry of Finance.
Note: The figures in parentheses represent the share (%) versus the sales of all industries.

028
Real Estate in Japan• Real Estate in Japan •REAL ESTATE‑RELATED DATAOTHERSHistory of Administrative Indices by Industry TypeFiscal Year
Ratio of operating
profit to total
capital (%)
Operating profit/
Total capital

Ratio of ordinary
profit to total
capital (%)
Ordinary profit/
Total capital

Ratio of operating
profit to sales (%)
Operating profit/
Sales

Ratio of ordinary
profit to sales (%)
Ordinary profit/
Sales

Turnover of total
capital (%)
Sales/
Total capital

Ratio of net worth
to total capital (%)
Net worth/
Total capital

1985

1990

1995

2000

2001

2003

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

All industries

4.3

4.6

2.7

2.9

2.4

3.0

3.6

3.6

3.7

2.1

1.9

2.7

2.7

2.8

3.2

3.5

3.5

3.6

3.8

3.8

3.0

Real estate

3.9

4.2

1.6

2.1

2.5

2.0

2.7

3.0

3.4

2.3

2.3

2.7

2.4

2.6

2.3

3.0

3.0

3.1

3.1

2.8

2.3

Construction

3.1

5.3

2.7

1.8

1.6

1.8

2.0

2.2

2.0

1.3

1.4

1.7

1.7

2.5

3.2

4.3

4.8

5.7

5.3

5.2

5.3

Steel

3.5

7.3

2.7

3.0

1.0

4.5

10.7

9.6

8.7

5.9

-0.5

2.3

1.1

-0.1

2.7

3.6

1.9

1.3

2.6

2.1

0.3

Land transport

4.4

4.7

3.1

2.8

2.2

2.9

3.3

3.4

3.3

2.5

2.4

2.7

2.8

3.2

3.1

3.2

4.1

3.9

3.8

4.0

3.4

All industries

3.1

3.5

2.0

2.8

2.3

2.9

3.9

4.0

4.0

2.5

2.5

3.0

3.1

3.4

4.0

4.2

4.3

4.6

4.7

4.7

3.9

Real estate

1.4

1.1

-0.1

1.3

1.6

1.4

2.0

2.8

2.8

2.0

1.9

2.0

1.9

2.5

2.3

3.0

2.8

3.3

3.3

2.8

2.5

Construction

2.3

4.6

2.5

1.9

1.6

2.0

2.1

2.4

2.2

1.7

1.7

2.0

1.9

3.1

3.7

4.8

5.2

6.2

5.9

5.9

6.0

Steel

1.1

5.6

1.1

2.0

0.2

3.7

10.2

9.7

8.6

5.7

-0.4

2.4

1.5

0.7

3.5

4.5

2.7

2.0

3.6

3.2

1.3

Land transport

2.4

3.5

1.4

1.6

1.1

2.1

2.7

2.9

2.9

2.0

1.9

2.3

2.5

3.0

3.2

3.3

4.1

4.1

3.9

4.1

3.6

All industries

2.8

3.5

2.4

2.6

2.2

2.8

3.2

3.1

3.1

1.9

2.0

2.8

2.8

2.9

3.5

3.7

3.9

4.0

4.4

4.4

3.7

Real estate

9.4

11.5

7.5

8.6

9.7

7.5

9.1

11.0

11.0

8.8

9.3

12.1

11.7

9.9

11.0

12.6

11.6

11.5

13.2

11.1

9.4

Construction

2.1

3.9

2.2

1.6

1.4

1.4

1.5

1.7

1.6

1.0

1.1

1.4

1.4

2.0

2.4

3.2

3.9

4.6

4.2

4.4

4.3

Steel

3.9

8.1

3.6

4.3

1.4

5.9

11.1

9.9

8.6

5.7

-0.7

2.8

1.3

-0.1

3.2

4.1

2.3

1.7

3.2

2.5

0.3
5.3

Land transport

3.8

5.1

4.5

4.2

3.3

4.4

5.4

5.5

4.5

3.7

4.0

4.4

4.1

4.4

4.9

4.8

6.1

6.1

6.5

6.3

All industries

2.0

2.7

1.8

2.5

2.1

2.7

3.4

3.5

3.4

2.4

2.3

3.2

3.3

3.5

4.2

4.5

4.8

5.2

5.4

5.5

4.8

Real estate

3.3

3.1

-0.3

5.3

6.1

5.2

6.8

10.2

9.2

7.6

7.5

9.1

9.3

9.5

10.9

12.6

10.9

12.4

14.0

11.1

10.2

Construction

1.6

3.4

2.1

1.6

1.4

1.6

1.7

1.8

1.7

1.3

1.3

1.6

1.6

2.4

2.8

3.7

4.2

5.0

4.7

5.0

4.8

Steel

1.3

6.1

1.5

2.9

0.2

4.9

10.6

10.0

8.6

5.5

-0.6

2.9

1.7

0.8

4.1

5.1

3.2

2.7

4.4

3.8

1.6

Land transport

2.1

3.8

2.0

2.4

1.7

3.3

4.4

4.6

3.9

3.0

3.1

3.8

3.7

4.1

5.0

5.0

6.1

6.3

6.6

6.6

5.6

All industries

150.5

125.0

110.4

109.6

107.6

108.4

112.2

112.7

116.7

107.5

95.2

95.8

93.9

95.6

92.3

92.3

89.9

88.3

87.7

85.3

82.0

Real estate

39.4

34.3

22.0

24.3

26.2

27.1

29.0

27.1

29.9

26.1

24.5

22.0

20.9

25.6

20.6

23.4

25.9

26.6

23.5

25.0

24.4

Construction

140.4

125.1

121.3

117.8

121.7

128.5

126.1

126.3

129.5

129.2

130.4

123.3

121.0

126.3

128.5

128.7

123.7

124.8

125.0

119.3

124.5

Steel

89.0

87.0

74.1

69.8

68.2

76.3

92.9

93.0

99.9

105.2

71.9

82.0

84.8

79.2

84.9

87.3

83.9

76.8

81.9

83.4

80.1

Land transport

113.1

88.4

67.7

65.0

66.0

65.2

60.8

62.9

73.4

67.5

60.5

61.7

67.9

71.4

64.1

65.7

67.8

65.0

59.1

63.1

64.5

All industries

17.7

19.1

18.9

25.7

25.2

28.3

30.1

32.8

33.5

33.9

34.5

35.6

34.9

37.4

37.6

38.9

40.0

40.6

41.7

42.0

42.0

Real estate

8.0

8.1

3.5

14.6

7.2

11.0

17.5

32.1

27.0

24.6

13.0

25.4

27.4

28.5

31.2

35.7

33.1

37.6

36.8

33.4

35.2

Construction

15.4

15.6

18.4

21.2

22.0

27.1

26.4

29.4

29.3

29.0

30.6

30.0

29.6

32.9

31.4

34.5

36.6

38.3

38.4

41.6

39.8

Steel

16.1

26.1

26.1

29.9

27.9

32.5

38.7

38.8

38.1

37.5

37.5

37.0

35.3

35.7

38.3

40.8

41.8

41.6

42.3

44.3

41.8

Land transport

14.9

23.9

18.9

20.7

19.8

22.5

27.1

24.3

25.0

26.2

26.4

27.1

26.9

30.2

32.6

32.6

33.5

32.9

32.2

35.6

37.7

Source: Prepared using the Monthly Finance Review: Annual Special on For-Profit Corporation Statistics issued by the Ministry of Finance.
Notes: 1. Total capital is the total of liabilities indicated on the credit side of the balance sheet (notes payable, accounts payable, accrued payments, corporate bonds, borrowings, allowances,reserves, etc.) and capital (paid-in capital, capital surplus and profit surplus) until 2006. From 2007, it is liabilities indicated on the credit side of the balance sheet and net assets (total ofpaid-in capital, capital surplus, profit surplus, etc.).
2. Net worth is the total amount for the capital section on the credit side of the balance sheet.
3. Operating profit is sales – (sales cost + sales expenses and general administrative expenses)
4. Ordinary profit is operating profit + (non-operating revenues – non-operating expenses)*Non-operating revenues are interest received, discounts, investment security interest, received dividends, capital gains from investment securities, etc.
*Non-operating expenses are interest paid, discounts, corporate bond interest, amortization of bond issue discount, capital losses from investment securities, etc.

1History of Number of Real Estate Companies(thousand companies)
300
10.5
10.1
257,358250

10.4
265,166

10.4

10.4

10.5

270,555

273,202277,143

10.4
281,046

10.5

288,638

293,330

284,693

10.6

10.6

297,586
10.7

299,818

301,005

302,939

304,000

306,280

310,413

10.8

10.9

11.0

11.1

11.2

11.3

Percentage of total companies for all industries (right scale)347,791
337,934
328,553
12 (%)
12.3
321,361
315,542¥10 million
11.8 12.0
11.6
11.4
to less than
10¥100 million
109,111（31.4）

8.9

150

8

204,700200

6

162,208
Less than¥10 million
235,744（67.8）

100

50¥1 billion
or more321（0.1）¥100 million
to less than
¥1 billion
2,585
（0.7）

0
1985

90

95

2000

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19
(fiscal year)

Source: Monthly Finance Review: Annual Special on For-Profit Corporation Statistics issued by the Ministry of Finance.
Notes: 1. C orporations are unlimited partnerships (gomei kaisha), limited partnerships (goshi kaisha), joint stock corporations (kabushiki kaisha) and limited corporations (yugen kaisha) with head
offices in Japan.
2. The figure for fiscal 2019 is the breakdown by paid-in capital amount. The figures in parentheses show the percentage of the total (unit: %).

029
Real Estate in Japan• Real Estate in Japan •POLITICAL, SOCIAL AND ECONOMIC EVENTS; REAL ESTATE-RELATED POLICY

Year

Political, Social andEconomic Events

TIMELINE

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News1995

The Great Hanshin-Awaji (Kobe)
Earthquake;
Sarin gas attack by the Aum
cult;
Sharp appreciation of the yen
to below 100 yen per dollar.

Act on Special Measuresconcerning Reconstruction of
Urban Districts Damaged by
Disaster (special exceptions forland readjustment business indisaster areas, etc.); Revised
City Planning Law (creationof a district planning system
for town promotion); Revised
Urban Redevelopment
Law (improvement of
implementation requirements
for city redevelopment
projects, etc.); Revised BuildingStandards Law (rationalizationof FAR restrictions inaccordance with the width ofroad in front, rationalization ofroad setback rules); City Park
Law Enforcement.

Execution of emergency safety
checks at affected buildings;
Revision to the Large City Law(creation of projects to supply
joint housing to city centers,
deregulation of enforcement
requirements for projects toimprove housing districts); Law
on Rebuilding, etc. Sectional
Ownership Buildings in Disaster
Areas (possible to ratify
rebuilding with 80% or more of
voting rights approving such in
the event a property completely
collapses in a major disaster);Establishment of Design
Guidelines for Housing in an
Aging Society (installing handrails, eliminating different
levels, etc.).

<Revisions to counter thedrop in land prices> Special
extraordinary taxation standard
for real property tax, etc.;
Reduction of personal longterm transfer tax (39% to32.5% for ¥40 million orless); Partial reduction of land
value tax (Reduction in halfof parking lots that must be
attached, etc.).

Revision to the Building Lots
and Buildings Transaction
Business Act [a. Requirementof registration with information
network organization certified
property information of an
exclusive broker contract; b.
Clarification of legal standingof information networkorganizations and supervision
by minister; c. Extension ofvalid license period (3 years
to 5 years), abolishment ofcertain reporting items; andd. Abolishment of testing
qualifications for the testing of
brokers, partial test exemptionof individuals who have passed
certain courses].

1996

Act on Special Measures
Concerning Promotion of
Disposal of Claims and Debts
of Specific Jusen Companies;
General elections based on
the single-seat constituency
system.

Revision to the Law for the
Improvement of the Areas
along Trunk Roads (enhancing
the roadside improvement
planning system, transferring
roadside improvement rights,
etc.; added roadside district
planning and district planning
districts to the requirements
for implementation districts
and such of city area
redevelopment projects).

7th Housing Construction
5-Year Plan (7.3 million houses,
half of all houses, meetguidance living standards;
Goal of average housing floorarea of 100m²); Focused
Emergency Plan for Reducing
Housing Construction Costs(dramatic review of the BuildingStandards Law, smoothing theimporting of housing, overseasmaterials and overseas
components, etc.); Revision to
the GHLC Law (strengthening
policy guidance function by
applying different interest
rates according to housing
structures when loaning tocertain new houses).

Reduction of land value tax rate
(0.3% to 0.15%); Enlargementof measure to adjust burdenof real property tax; Reductionof personal long-term transfer
tax (32.5% to 26% for ¥40
million or less; 39% to 32.5%
for more than ¥40 million to¥80 million or less); Reduction
in focused corporate tax
rate (very short period 30%
to 15%, short period 20%
to 10% and general 10%
to 5%; Enlargement ofspecial measure for taxation
standard on land acquisition(registration license tax 50/100
to 40/100 and real estate
acquisition tax 2/3 to 1/2).

Hold general meeting ofInternational Real Estate
Federation in Tokyo;
Chairman Tsuboi of the Real
Estate Companies Associationof Japan suddenly passes
away and Mitsui Fudosan
President Junichiro Tanaka
assumes the chairmanship.

1997

Consumption tax rate raised;
Failure of the Hokkaido
Takushoku Bank and Yamaichi
Securities;
Opening of the Trans-Tokyo Bay
Highway.

Act on Promotion of
Improvement of Disaster
Control Districts in Populated
Urban Districts (creation ofa system for planning theimprovement area of disaster
preparedness districts andimprovement associations fordisaster preparedness zones);
Revision to the City Planning
Law and Building Standards
Law (creation of zones for
attracting high-rise housing
and rationalization of FAR
rules for condominiums andother joint housing); Creationof a type of sophisticated use
zone for upgrading functions;
Creation of a general design
system by lot size; Creation ofmini lot readjustments.

New General Land Policy
Promotion Outline (proclaimed
that the new objective ofland policy would shift fromsuppressing land prices toefficient land use; Aim to
invigorate land transactions);
Revision to the GHLC Law(extended the preferential
interest rate terms andrepayment period for loans
when buying certain existing
housing); Bring transparency,
simplicity and speed toprocedure for approving use
conversion for agricultural
land.

Reduction and deferment ofburden from the perspectiveof balancing the burden
standard of real property tax,etc.; <Revisions to reducethe burden when acquiring
housing in line with theincrease in consumption tax
rate to 5%> Enlargement of
housing acquisition promotion
tax system and phased
reduction in residing years(maximum of ¥1.8 million in
1997, ¥1.7 million in 1998,¥1.6 million in 1999 and ¥1.5
million in 2000 and 2001);
Halving of reduced tax rate forregistration license tax related
to housing buildings; Raising ofspecial deduction of real estate
acquisition tax for new housing(¥10 million to ¥12 million);
Reduction of stamp tax.

Establish 4 information
network organizations (welfare
corporations) nationwide;
Revision to the Real Estate
Syndication Act (whenindividuals with specialized
knowledge or experience ininvestment are participatingin the project, the applicationof regulations to protect
general investors is exempted);
Ministry of Construction issues
its Real Estate Renovation
Vision (future direction of
the real estate industry andcountering present issues
including the promotion of IT
and modernizing a transparent
and fair investment market tomeet the changes in the socioeconomic structure); Building
Lots and Buildings Transaction
Business Act (extended thevalid period of broker licenses
from 3 to 5 years); The Real
Estate Companies Associationof Japan issues its 21st Century
Vision and Corporate Codeof Conduct; Sumitomo Realty& Development Chairman
Shinichiro Takagi appointed
chairman of the Japan
Condominium Association.

030
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News

1998

Nagano Olympics;
Financial Reconstruction
Law, etc., Act on Emergency
Measures for Early
Strengthening of Financial
Functions;
Nationalization of the LongTerm Credit Bank of Japan and
the Nippon Credit Bank.

Revision to the City Planning
Law (expansion of the area
for which district plans can beestablished within urbanization
adjustment districts, diversification of special use districts,etc.); Revision to the BuildingStandards Law (a. Establishingrules for the performanceof building standards, b.
Rationalization of rules
concerning sunlight, etc., c.
Opening of structure confirmation and inspection businessto private sector, etc.; Revision
to the City Redevelopment
Law and Law on the Loaningof Urban Development Funds
expansion of cities subject tothe establishment of city redevelopment policies, creationof a system for participants inspecial projects and creationof a system for certifying redevelopment projects); Law on
Improvement and Vitalizationin City Center (promotion ofcomprehensive and integrated
measures based on the
improvement of city areas andactivating commerce utilizing
the creativity of the area, inorder to activate city centersthat are hollowing out).

Law Promoting the Building ofSuperior Suburban Housing(promoting the building ofsuperior houses in agricultural
towns and suburbs); Revision
to the Agricultural Land Law(transferred authority toapprove change of agriculturalland of 4ha or less to the governor); Revision to the National
Land Law (transfer to a system
for reporting after the fact andcreation of emphasized districts); Emergency measures toexpand housing investment.

Suspension of land tax taxaLaw on Securitization oftion; Reduction of personalSpecified Assets by Special
long-term transfer taxation
Purpose Companies (SPC Law).
(26% for ¥60 million or lessand 32.5% for more than
¥60 million); Elimination ofweighted tax on very short-termownership by corporations;Non-application of shortterm and general ownershipcategories (through 2000);
Abolishment of restrictions on
including interests on loans
when corporations acquireland as expenses; Creation ofsystem for carrying forward
deduction of capital losses
on residential property;
Application of measures toreduce real estate acquisition
taxes and real property taxes
on second homes.

1999

Criticality accident inTokaimura, Ibaraki;
Mergers or business mergers
between major banks, etc.;
Response to Y2K.

Revision to the Act concerning
Lending of Urban Development
Funds (smoothing the capitalraising process; enhancing
measures for efficiently using
land with low use or non-use;
improving and enhancing
redevelopment methods);
Promoting efficient use offormer factory sites (circularfrom the City Bureau andHousing Bureau Chiefs).

Special Provisions Law concerning Promotion of the
Supply of Good Quality Leased
Housing (creation of fixed-termleasehold rights and enforcement in 2000); Housing Quality
Assurance Law (requirement of
10-year warranty and enforcement in 2000).

Creation of new housing loan
deduction system (deduction
period of 15 years, etc.);
Enhancement of system forcarrying forward deduction ofcapital losses for residential
property; Improvement of special exception to cash gift for
acquiring housing; Reduction
in tax rate on personal longterm ownership transfer
income tax (uniform 26%);
Improvement in special measure for registration and license
tax; Enhancement of special
measures for real estate acquisition tax related to the houseand its lot.

Launch of the Housing & Urban
Development Corporation; Realestate monetization and securitization; Internet transactions
take off.

2000

Prime Minister Obuchi passes
away; Miyake Island erupts,
floods in the Tokai region;
Turmoil in the U.S. presidential
elections; Number of juvenile
crimes rises.

Revision to the City Planning
Law and Building Standards
Law (enhancing the master
plan; reviewing the demarcation and development
permit system; enhancing thesystem for securing a goodenvironment; introducing the
new system for re-adjusting
existing city areas; introducing
regulations for developing andbuilding non-city planning districts; promoting transparency
and citizen participation in
the city planning and decisionsystem, etc.); Law for the
Recycling of Construction
Materials (segregation anddismantling of construction
materials and such; recyclingof specified construction materials; fully enacted May 2002).

Act on Advancement of Proper
Condominium Management(condominium manager andmanagerial chief qualification
system and condominium management company registration
system; enforcement in 2001).

Half-year extension of the housing loan deduction system (upto taking up residence in June
2001); Improvement in floorarea requirements of special
real property tax measuresfor new housing and 2-year
extension of application period;
Phased reduction of real property tax on land (75% in fiscal
2001 and 70% in fiscal 2002);
3-year extension of special
measures on land transaction
tax (1/3 for registration license
tax and 1/2 for real estate
acquisition tax).

Growing popularity of large
and tower condominiums;
Start of real estate investment trusts; Creation of
the investment consultant
registration system; JICPA
issues the "Audit Handlingof Judgment on Decision to
Forcefully Reduce Valuationof For-Sale Real Estate;"
Integration of the Japan Home
Builders Association and the
Housing Industry Development
Association to form the Japan
Association of Home Suppliers.

031
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News

2001

Inauguration of the Koizumi
Cabinet which upheld structural reform; September
11 attacks in the U.S.; Antiterrorism Special Measures
Law enacted; Universal Studio
Japan (Osaka prefecture)and Disney Sea (Urayasushi)
opens, MLIT establish in
January.

Launching of Urban
Renaissance Headquarters(led by the prime minister);
Finalization of urban regeneration project (phases
1 through 3); Emergency
measures for promoting city
development investment by
the private sector; Directionof emergency system reforms
for urban renaissance; Reportof the urban renaissanceregeneration strategy team;
Establishment of new city creation vision for Tokyo by Tokyo
Metropolitan Government;
Establishment of City Planning
Operational Guidelines.

Enforcement of Law for
Securing Dependable
Residences of the Elderly;
Establishment of the 8th
Housing Construction 5-Year
Plan; Decision to abolish theGovernment Housing Loan
Corporation within 5 years;
Abolish the Housing & Urban
Development Corporation by
fiscal 2003 and have a new
independent administrative
corporation established to takeon a portion of the originalfunctions.

Creation of new housing loan
deduction system (deduction
rate of 1%; borrowing limit of¥50 million; deduction periodof 10 years); Enhancement of
donation tax on house acquisition funds (tax exempt limit of¥5.5 million); Creation of rental
housing supply promotion tax
for elderly housing (5 years
and 40%premium depreciation); 3-year
extension of the special taxation on transfer income of
personal general long-termownership (26% (20% income
tax and 6% residential tax));
Enhancement of collection
grace period system for special
land ownership tax; Creationof measures to reduce transaction taxes on real estate
securitization (SPC and investment corporation); Reduction
in capital gains tax on listed
real estate investment securities for individuals.

Integration of the Real Estate
Companies Association and
the Japan Condominium
Association with Junichiro
Tanaka serving as chairman(chairman of the Real Estate
Companies Association); Realestate investment trusts arelisted.

2002

Prime Minister Koizumi visits
North Korea to normalize
diplomatic relations; Korea/
Japan World Cup held; “Prompt
Countermeasures to Deflation”
formulated.

Creation of the Special
Measures Act for Urban
Renaissance; Designationof the urban renaissanceemergency improvement
district (total of 44 districts inphases 1 and 2 totaling about
5,700ha); Revision to the Urban
Redevelopment Law (conferral of enforcement function
for private condemnation,etc.); Revision to the BuildingStandards Law and City
Planning Law (maximum floorarea ratio of 1300%, urban
proposal system, speeding up
comprehensive design procedures, etc.); Abolishment of theIndustry (factory) Restrictions
Law; Deregulation of theenvironmental impact assessment ordinance procedure(Tokyo); Flexibility in obligation
to provide parking spaces(Tokyo); Finalization of Urban
Renaissance Project (phase 4).

Passage of the Soil
Contamination
Countermeasures Law;
Revision to the Law for
Smoothing Condominium
Reconstruction and revision to
Sectional Ownership Law.

Reduction in registration
license tax on sale of existingbuildings (25/1000);
Expansion of collection grace
period measures for special
land holding tax (allow change
to exempted land and transfer);
Abolish maximum tax rateof 39% for tax on personal
general long-term ownershiptransfer income (taxationsuspended).

Rebuilt Marunouchi Building
opens; Caretta Shiodome, thefirst wave of Shiodome’s redevelopment opens.

2003

Iraq War;
Second Koizumi Cabinet.

Finalization of Urban
Renaissance Project (phases
5 and 6); Designation ofurban renaissance emergency
improvement districts (phase3); <Total of 53 districts inphases 1 to 3>; Start of operations by city regeneration fundinvestment corporation.

Launch of securitization support business by Government
Housing Loan Corporation(acquisition type).

Reduction in registration andlicense tax rate (sale, etc.
10/1000); Suspension oflevying of special land holding
ownership tax (ownership andacquisition on or after January
1, 2003); Creation of settlement taxation system at timeof inheritance; Abolishmentof business office tax (new or
expanded portion); Creation ofurban renaissance promotion
tax system.

Shinichiro Takagi becomeschairman of the Real Estate
Companies Association (chairman of Sumitomo Land andRealty); Roppongi Hills opens.

2004

Athens Olympics;
Second reshuffled cabinet of
the Koizumi Cabinet;
Occurrence of major natural
disasters including a wave of
typhoons hitting Japan, the Mid
Niigata Prefecture Earthquake,and earthquakes and tsunamis in the ocean off Sumatra
Island.

Finalization of Urban
Renaissance Projects (phases
7 and 8); Enhancement ofcommunity regeneration
measures and town creation
subsidies; Establishment of 3
landscaping and greenery laws
including the Landscape Law.

Revision to Condominium
Management Rules; Partial
enforcement of the Personal
Information Protection Law;
Launch of the securitization
support business by theGovernment Housing FinanceCorporation (warranty type).

Creation of measures to reduce
ordinance concerning real
property tax and city planningtax of commercial property,
etc.; Rebuilding of taxation
system for capital gains frompersonal land transfers;
Extension of suspension period
for application of taxation
system on land transfers bycompanies; Extension ofsystem for reducing home loan
taxation (phased contraction
through 2008).

Construction completed on
COREDO Nihonbashi andMarunouchi OAZO; Growth inhousing loans issued by private
financial institutions; Repeatedrelease of skyscraper condominiums and progression of
population's return to residing
in city centers.

032
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News

2005

Aichi Expo held;
LDP wins the Lower House
elections in September by an
overwhelming majority, followed by the enactment of the
Postal Service Privatization Act;
Princess Nori marries.

Toward activation of urban
areas in local regions, discussion on review of 3 urban
development laws begins tointensify.

The Government Housing Loan
Corporation, which engaged
in direct financing utilizing
the government fund, is abolished and instead, the Japan
Housing Finance Agency, an
independent administrative
institution, is established tosupport and supplement loans
for the housing fund; Kubota
Corporation, a machinery manufacturer, announces to the
public that employees working
at Kubota's factory have been
suffering health problems
caused by asbestos.
Based on the fact that a lotof asbestos is used for architectural and other materials,
anxiety about health in relation
to asbestos spreads to the general public.

Extension of the scope to apply
various preferential measures
for taxation related to existinghomes (mortgage tax reduction
system, preferential measure
for replacement of residential properties, preferential
measures for the tax system
for settlement at the time ofinheritance concerning housing purchases and other funds,
reduction of registration andlicense tax for registering retention of ownership of housingbuildings, preferential measures for taxation standards,
etc. for real estate acquisition
tax on existing houses, etc.);
Extension and enhancement ofurban renaissance promotion
taxation system; Review ofsystem to postpone collectionof special landholding tax;
Required taxation measure in
relation to term leasehold interest (clarification of handling of
lump-sum payments).

Hiromichi Iwasa (President of
Mitsui Fudosan) inaugurated as
the president of the Real Estate
Companies Association ofJapan; Tsukuba Express whichcuts travel from Akihabara
to Tsukuba in 45 minutes is
opened in August; Trust insafety of buildings is shaken
with the quake-resistancedata falsification scandal andsurfacing of deficiencies inchecking functions of building
construction; The Akihabara
Dai Building, Nihonbashi Mitsui
Tower and other buildings completed; Vacancy rate in central
Tokyo improves.

2006

Zero-interest rate policy lifted
in July; Inauguration of the Abe
Cabinet in September.

In the wake of the quake-resistance data falsification
scandal, the Law to Revise
Portions of the BuildingStandards Law, etc. to Secure
Safety of Buildings is enacted.
Three urban development laws
enacted.

Basic Act for Housing wasenacted.

Reduction and extension ofpreferential measures forland and building relatedtransaction taxes (registrationand license tax, real estate
acquisition tax); Extension of
measures to reduce ordinanceconcerning real property
tax, etc. of commercial property, etc.; Extension andabolishment of preferential
measures in relation to housing
acquisition fund donations;Foundation of taxation system
to promote quake-resistancerenovation of existing homes;
Extension of special measures
for real estate acquisition tax
related to the house and housing land.

Prefectural land price research
reveals that the prices ofboth residential land andcommercial land in 3 major
metropolitan areas rose forthe first time in 16 years. The
number of listed REITs reaches
40 in December and the aggregate market value increases toabout ¥5 trillion.

2007

Inauguration of the Fukuda
Cabinet in September.

The Law to Revise Portions of
the Urban Rejuvenation Law isenacted.
Law to Secure Execution of
Defect Warranty for Specific
Housing is enacted.

Japan Housing Finance Agency Extension of preferential
inaugurated.
measures on replacementof commercial property
concerning land owned
over the long term, etc. toland, buildings, etc.; Extension,etc. of special tax measuresconcerning city and regional
regeneration projects; Securing
effect of reduction of housing
loan
tax for residents moving into
property in 2007 and 2008
in association with transfer
of tax sources to individual
residential tax; Extensionof special measures for
aggregation of profits and loss/
deductions carried forward ofloss on transfer accompanying
replacement of residential
properties;
Extension of decreased tax
rate of registration and license
tax of houses and special
measures to reduce stamp
tax on purchase and saleagreement, etc. for real estatetransactions; Extension ofsystem of special deductionof ¥15 million concerning
specified sector housingdevelopment projects.

Financial Instruments andExchanges Law enacted.
Tokyo Midtown, ShinMarunouchi Building,Kasumigaseki Common Gateand other buildings completed.

033
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News

2008

Inauguration of the Aso
National Sustainability Plan
Cabinet; Effects of the financial (national plan) approved at acrisis stemming from the U.S.
Cabinet meeting.
subprime loan problem spread
across the globe.

Emergency Measures for
Activation of Housing/Real
Estate Market announced.

Extension of special measureson registration and license
tax of land; Creation of
special measures for realestate acquisition tax otherthan houses; Tax Reduction
System for Long-term Excellent
Houses established; Taxsystem for promotion of energy
conservation renovations ofhouses established.

Law for Prevention of Transfer
of Criminal Proceeds enacted.
Real estate companies
successively go under.

2009

H2N1 virus spreads from
National spatial strategy
around springtime; Citizen(regional plan) approved by thejudge system begins in May;
minister.
DPJ wins the Lower House
elections by an overwhelming
majority in August; changeof government for the firsttime in 16 years; Inaugurationof the Hatoyama Cabinet in
September; Inauguration of theConsumer Affairs Agency in
September.

Policy Package to Address
Economic Crisis announced.
Emergency Economic
Countermeasures for
Future Growth and Security
announced.
Eco-point system for housing
established. New Growth
Strategy (basic policies)
announced.

Tax Reduction System for
Housing Loans extended andexpanded, Tax Reduction
System for Long-term Excellent
Houses established, etc.;
Special income tax deduction
for barrier free and energy
conservation renovations ofexisting houses established;
Tax rate for registration license
tax related to real estatetransactions left unchanged;
Special measures to arousedemand for land during
the economic recovery
established.

Real Estate Market Stabilization
Fund established. Both land
prices that were publishedand land prices according
to surveys by prefectures
decrease nationwide. The
number of new housing
constructions falls under 1
million units to 780,000 units
for the first time in 42 years.
Completion of construction of
Mitsubishi Ichigokan.

2010

Inauguration of the Kan
Cabinet in June;
Bank of Japan announces its“Comprehensive Monetary
Easing Policy” in October.

Low Carbon City Development
Guidance created (MLIT).

Increased interest-rate
reduction from “Flat 35S;”“MLIT Growth Strategy”
announced; “New Growth
Strategy” announced; “ThreeStep Economic Measures for
the Realization of the New
Growth Strategy” announced.

Expansion of measures for
exemption of donation tax
for housing purchases andother funds, etc.; Extension of
special measures concerning
donations of funds for housingpurchases, etc. in the tax
system for settlement at thetime of inheritance, etc.;
Extension of exceptions for
fixed asset tax reduction for
newly constructed housing.

Completion of construction forCoredo Muromachi, Yuito, etc.;
RECAJ formulates the “RECAJ
Action Plan for Low Carbon City
Development” and “‘Future
Urban Development Strategy’for the Growth of the Housing
and Urban Development
Sectors;” “Tohoku Shinkansen”
opens in December.

2011

Great East Japan Earthquake inMarch;
Yen records highest post-war
value in March;
Inauguration of Noda Cabinet
in September;World population hits 7 billionin October.

Establishment of“Comprehensive Special Zone
System;”
Revision of Special Measures
Act for Urban
Renaissance (establishmentof emergency developmentareas designated for urban
reconstruction).

“Serviced Silver Home System”
begins;
Implementation of Registration
System for Rental Housing
Management Operator;
Establishment of system for Flat
35S Eco Points and Recovery
Support/Residence Eco Points.

Establishment of special
measures for specific urban
redevelopment emergency
development areas;
Establishment of special
measures for international
strategy comprehensive zones;
Extension of the tax
system for the promotionof construction of prime
rental senior housing upon
restructuring as targeting
senior housing with services.

Complete opening of Kyushu
Shinkansen Kagoshima Route;Keiji Kimura (President of
Mitsubishi Estate) inaugurated
as the president of the Real
Estate Companies Associationof Japan;
Adoption of “Five Principles ofRemoving Antisocial Forces
such as Crime Syndicates from
Real Estate Transaction.”

2012

Tokyo Skytree, the world’s
highest free-standing tower(634m), opened in May;
Summer Olympics held in
London during July and Augustand Japan wins 38 medals, its
most ever; Inauguration of the
2nd AbeCabinet in December.

Partial revision of enforcement
order of Special Measures
Act for Urban Renaissance;
Statistics for stock of buildings
subject to special easing
measures for extension
announced; Buildings withnew earthquake resistancestandards becomes 67%.

Disaster Reconstruction
Support and Eco Point System
for Housing System starts
accepting applications;
Maximum of loan rate for Flat
35 lowered from 100% to 90%;
Standard apartment contract
revised; Law concerning thepromotion of low-carbon
cities established; Firstannouncement of the realestate price index (residence);
Formulation of total plan forrenovation of existing homes;
Compilation of proposals ofReal Estate Transaction Market
Vitalization Forum.

Extension of exceptions for
replacement purchases ofbusiness assets in long-termownership of land; Extensionof exceptions for fixed asset tax
reduction for newly constructedhousing; Enhancement andextension of exceptions
for donation of funds foracquisition of housing, etc.
Establishment of special
measures to promote Approved
Energy-Saving Houses.

Terms for display of realestate advertisement, etc.
changed; Existing homes
allowed to display double price;
Shibuya Hikarie and Tokyu
Plaza Omotesando Harajuku
completed.

034
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News2013

Introduction of Special
Reconstruction Income Tax(until 2037) in January;
Prime Minister Abe declares
intent to participate in TPP
negotiations in March;
Tokyo selected as host of
the 2020 Summer Olympics/
Paralympics in September;in October, it is decided to raise
consumption tax to 8% starting2014.

Passage of National StrategicSpecial Zone Law;
Passage of Industrial
Competitiveness Enhancement
Act;
Passage of Basic Law of
National Land Enhancement;

Ministry of Land, Infrastructure,
Transport, and Tourism
formulates Inspection
Guidelines for Existing Housing;City of Tokyo implements
Special Development Zones
to Advance Fire Resistanceand creates housing subsidy
system;Amendment to the Real EstateSpecified Joint Enterprise Act
passed;Revised Seismic Retrofitting
Promotion Law passed;
Implementation of 100%
financing for Flat 35
mortgages, and further
lowering of Flat 35S interest
rate;
Finalization of Japan
Revitalization Strategy.

Measures accompanying
consumption tax rate hike(relating to home buying, etc.);
Extension of the Urban Renewal
Promotion Tax system;
Creation of special exceptions
in order to strengthen disasterprevention capacity of cities;
Creation of tax system-related
preferential measures forintensive urban development
projects;
Extension and expansion of
special exceptions for stamp
tax on real estate transaction
contracts.

City of Osaka opens Grand
Front Osaka redevelopment offormer Umeda Freight Station
site;Completion of Otemachi Tower;
Japan Association of Home
Suppliers and National
Federation of Housing Industry
Associations merge to form
the National Housing Industry
Association.

2014

Consumption tax increased to
8% in April;
Basic Policies for Economic
and Fiscal Management (BigBoned Policy) approved by
Cabinet in June;
Bank of Japan approves
additional monetary easing in
October;
Postponement of next
consumption tax hikeannounced in November;
Third Abe Cabinet inaugurated
in December.

Implementation of Law to
Revise Portions of the Special
Measures Act for Urban
Renaissance;
Passage of City, People, and
Job Creation Act;
Passage of Law to Revise
Portions of the Local
Revitalization Act;
Implementation of Law to
Revise Portions of the Basic Act
on Disaster Control Measures;
Passage of Law to Revise
Portions of the Act on Sediment
Disaster Countermeasures for
Sediment Disaster Prone Areas;
Passage of Vacant Houses
Special Measures Act.

Publication of Individual
Residence Rental Promotion
Investigative Committee report;
Formulation of Real Estate
Information Stock System Basic
Plan;
Publication of Guidelines forApplication of Health Care
REITs;
Finalization of revised Japan
Revitalization Strategy;
Formulation of Japan
Construction and Real Estate
Industry Strategy Based on
Market Analysis by International
Region;Passage of Vacant Houses
Special Measures Act;
Implementation ofrevised Act on Facilitationof Reconstruction ofCondominiums.

Extension of system forcarrying forward transfer losses
in cases of residential property
replacement, etc.;
Extension of system forcarrying forward transfer
losses on specified residential
properties;
Extension of measures toreduce fixed asset tax for newly
constructed housing;
Extension of measures toreduce registration license
tax for registering ownershipof certified long-life quality
housing;
Extension of measures toreduce real estate acquisition
tax on housing and land.

Abeno Harukas is completed,becoming the tallest building inJapan;
Completion of construction of
Toranomon Hills;
Passage of revised Building
Lots and Buildings Transactions
Act.

2015

Battleship Island and others
granted World Cultural Heritage
Status in July;
Third Abe Cabinet is reshuffledand adopts the slogan “ASociety with 100 Million Active
Citizens” in October;
In December, the LDP agrees
with the Komeito to introduce
a reduced tax rate with theraising of the consumption tax
rate to 10%;In December, an agreement is
adopted at COP21.

Passage of the Act on
Improvement of Energy
Consumption Performance of
Buildings;
Changes to National Spatial
Strategies approved by
Cabinet.

Publication of Existing Home
Market Vitalization Round Table
report;Passage of bill proposing
partial amendment of the Act
on National Strategic Special
Zones and Act on Special
Districts for Structural Reform;
The number of certified lowcarbon houses surpasses
9,000 units;
Start of pilot program to provide
Explanation of Important
Matters documents using IT.

Extension of special measureson replacement of commercial
property concerning land
owned over the long term;
Extension of measures toadjust burden of real property
tax on land;
Extension of urban renaissancepromotion taxation system;
Enhancement of special
measures relating to National
Strategic Special Zones;
Enhancement and expansionof special measures relating to
donations of funds for housingpurchases, etc.

Opening of Hokuriku
Shinkansen line between
Nagano and Kanazawa;
Change of terminology to “realestate transaction specialist”
based on enactment of partial
amendment to Building Lots
and Buildings Transaction
Business Act;
Real Estate Transaction
Modernization Center
Foundation changes nameto Real Estate Transaction
Promotion Center;
MIPIM held in Japan for the firsttime;Completion of Dai Nagoya
Building.

035
Real Estate in Japan

Year

Political, Social andEconomic Events

Land Planning, City
Planning, Architectural
Regulations, etc.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News2016

In January, the individual number(My Number) system is launched
In February, the Bank of Japan
introduces negative inflation
In April, the 2016 Kumamoto
earthquakes occur
In May, the G7 Ise-Shima Summit
is held
In May, raising of theconsumption tax to 10% is
postponed
Starting with the July House ofCouncillors election, the voting
age is lowered to 18
In August and September, the
Rio Olympics and Paralympics
are held
In August, the 3rd Abe Cabinet isreshuffled
In November, the Paris
Agreement comes into effectPartial revision of Special
Measures Act for Urban
Renaissance (extension of
approval application period for
private urban redevelopment
business plans, etc.).
Establishment of system
to ease floor area ratio
restrictions, especially whendeveloping lodging facilities.

New Basic Plan for Housing(National Plan) approved atCabinet meeting.
Building Lots and Building
Transaction Business Act
revised to promote building
inspection activities.

Extension of measures toreduce fixed asset tax for newly
constructed housing.
Extension and expansion of
special measures relating to
National Strategic Special
Zones.
Establishment of special
measures to reduce incidenceof vacant homes.
Establishment of special
measures for cases involving
renovation of homes
to accommodate three
generations in the same
household.

Hokkaido Shinkansen (ShinAomori to Shin-HakodateHokuto).
Privatization of KansaiInternational Airport and Osaka
International Airport.
Development of IT-related
services (IoT, real estatetechnology, etc.).
IT-based statement pilot
program: 564 cases in 1 year.

2017

In January, Donald Trump wasinaugurated as President of theUnited States of America;
The first Premium Friday was
implemented on February 24;
In March, the Action Plan for the
Realization of Work Style Reform
was compiled;
In November, the Abe Cabinet
was inaugurated for the fourthtime, many in the manufacturingindustry were discovered to betampering with data, and the
problem of land with unknown
owners gained attention.

Flexible operations contrived
for Redevelopment Promotion
Areas;
Revision of Urban Green SpaceConservation Act, City Parks
Act, Productive Green Space
Act, etc.;
Clarification of delivery box
capacity exclusion;
Technical advice regarding
introduction of new packages
for the realization of joint
contribution in multiple
private urban development
projects given to local publicorganizations.

Removal of ban on Explanation
on Important Matters using IT
systems (lease contracts).

Extension of exceptions for
replacement purchases ofbusiness assets relating tolong-term ownership of land;
Extension of urban renaissancepromotion taxation system;
Expansion of tax reforms thatwill help stimulate the existing
housing market;
Revision of local taxation(fixed assets, etc.) relating toresidential high-rise buildings(tower blocks).

Masanobu Komoda (Presidentof Mitsui Fudosan) inaugurated
as the president of the Real
Estate Companies Associationof Japan;
Expansion of the sharing
economy;Some roadside land prices inTokyo and Ginza reach record
levels.
GINZA SIX and AKASAKA
INTERCITY AIR open.

2018

In February, the PyeongChang
Winter Olympics and North
Korea-United States Singapore
Summit.
In July, heavy rains andthe Hokkaido Eastern Iburi
Earthquake.
Osaka chosen to host 2025
World Expo.

Building Standards Act partiallyrevised to ensure building
safety, use existing stock, etc.
Regional Revitalization Act
partially revised to establish
Area Management Expense
System.
Act on Special Measuresconcerning Urban
Reconstruction partially revised
to promote “sponge cities.”

Revised Building Lots andBuilding Transaction BusinessAct fully enacted, mandating
inspection explanation whenbrokering existing housing.
Act on Special Measuresconcerning Facilitating Use ofLand with Unclear Ownershipestablished. Private Lodging
Business Act enacted.

Land tax adjustment measuresextended.
Reduction exceptions toproperty tax on new residences
extended.
Exceptions to buying/selling
residential estates extended.
Exceptions to National
Strategic Special Zones
extended.

Progress in initiatives for
improving productivity andrealizing work-style change.
Tokyo Midtown Hibiya opened.

2019

In April, the then-emperor
abdicated, and the present
emperor was enthroned in May(start of Reiwa era).
In September, Rugby World Cup
in Japan.
Disasters such as typhoons Faxai
and Hagibis occurred.
In October, consumption tax wasincreased to 10%.
Pro-democracy demonstrationsin Hong Kong.

Initiation of smart city publicprivate platform.

Real Estate Vision 2030
announced.
Amendment of Guidelines
for Utilization of Land with
Unknown Owners.

Extension of home loan tax
reduction deduction period.
Extension of tax system
for the promotion of urban
redevelopment.
Extension and expansion of
special measure for the controlof vacant houses.
Creation of measure for tax
assistance for the problem oflots with unknown owners.

Nihonbashi Muromachi Mitsui
Tower completed.
Shibuya Scramble Square
opened.

2020

Spread of COVID-19.
Postponement of Tokyo Olympic
and Paralympic Games (March).
Inauguration of the Suga Cabinet
in September.

Amendment of part of Act on
Urban Renaissance, promotionof “Comfortable City That
Induces Walking” initiative.
Change of basic guidelines forlandslide disaster prevention
measures.

Revision of civil code,
making establishment of
maximum limit in joint liability
agreements mandatory, etc.
Revision of Act on Proper
Condominium Management
and Act on Facilitationof Reconstruction ofCondominiums andformulation of a basic policy by
the government.
Formation and partial
enforcement of Act on Proper
Rental Apartment Management
Business, enhancement ofsublease regulations, etc.

Extension of special provision
for replacement of businessassets concerning lands held
for long periods.
Extension of special measure
in case of transfer of land for
private redevelopment projects
in national strategic special
zones, etc.
Deduction of 1 million yen
from long-term capital gains
for unused or infrequently used
lots, etc.
Extension of measure to
reduce fixed-asset tax for new
residences.

Completion of Tokyo Port City
Takeshiba, Ariake Garden,
Comore Yotsuya, etc.
Operations increasingly moved
online due to spread of COVID19.

036
Real Estate in Japan

Year
2021

Political, Social andEconomic Events
COVID-19 continued to spreadthroughout the globe;
Green Growth Strategy in linewith Carbon Neutrality in 2050
embodied in June;
Tokyo 2020 Olympic andParalympic Games held from Julyto September;
Inauguration of Kishida Cabinetin October;
House of Representatives
election in October.

Land Planning, City
Planning, Architectural
Regulations, etc.
Partial revision of Act on
Promotion of Long-Term Quality
Housing, certification ofapartment buildings, etc.;
New Basic Land Policy
approved at a Cabinet meeting;
Final summary of Investigation
Commission on Energy-Saving
Measures for Houses andBuilding for a DecarbonizedSociety.

Land and Housing Policy

Land and Housing Taxation

Real Estate Industry News

New Basic Plan for Housing
approved at a Cabinet meeting;
Act on Proper Rental Apartment
Management Businessfully implemented, Rental
Apartment Management
Registration System launched;
Condominium Management
Rules revised, enabling
management association
meetings and board of
directors meetings using IT;
Start of establishment of realestate ID rules;
Establishment of Model
Contract Clauses for Disposalof Leftover Objects;
Announcement of Guidelines
for Notification of Death by
Housing Land and Building
Dealers.

Extension of land-related fixed
property tax burden adjustment
measure, etc. and measuresaccording to economic status;
Extension of measures toextend deduction period for
housing loan tax reduction,
etc.;
Extension of urban renaissancepromotion taxation system.

Full operation starts for
IT statements in sales
transactions;
Six digital reform-related bills
passed into law; Revision of
Building Lots and Building
Transaction Business Act madedigitization of statements,
etc. possible and real estatetransactions enabled to be
conducted fully online;
Sudden rise of lumber prices;
Acceleration of
decarbonization trends.

037
Real Estate in Japan ny duplication without receiving express permission from the Real EstateA
Companies Association of Japan is expressly forbidden. (February 2022)