• 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