2) Improvement of real estate market conditions

In order to ensure the transparency of the real estate market as well as facilitate and revitalize transactions, MLIT is carrying

out the survey and publication of transaction prices. Initially in 2005, this survey was conducted in the ordinance-designated cities of the three major urban districts. Since then, the subject cities have expanded to nationwide cities. The information acquired from the survey, such as the location, area and price of the real estate, are released on the Internet called Information of Land Synthesis System $ ^{1} $ (as of January 2010, transactions released was 768,397 and the website received around one hundred million hits). The information provided on the website is edited to prevent disclosing information on specific property.

In addition, for the purpose of greater transparency and reliability of the real estate market, MLIT has been collecting information on the revenue and cost relating to the operation of rental properties, such as offices and apartments and provides it through a real estate market database on the Internet from FY 2008.

Modified information of real estate transaction

price owned by Real Estate Information Network

(REINS $ ^{2} $ ) is also released through a real estate transaction information website $ ^{3} $ . Furthermore, the real estate industry is developing the real estate website (Real Estate Japan $ ^{4} $ ) for providing detailed property information managed by real estate transaction operators to consumers, and MLIT has continuously been providing support.

3) Tax Incentive

Taxation revision of FY 2010 approved the extension to applicable subject of the special measures concerning real estate acquisition tax for non-residential houses and for registration and licensing tax for Japan-REITs and special purpose companies. $ ^{5} $

4) Utilization of the leasehold term for business use

In order to respond to the diversification of land use as socio-economic environment evolves, the Act of Land and Building Lease was revised to extend the maximum length of leasehold for business use from 20 years to 50 years.

5) Aiming to create the real estate market for a new age

Based on the Report of the Real Estate Valuation Board (constituted under the National Land Council) in March 2009, valuation procedures were unified (such as the General Guideline for Real Estate Appraisers on Determination of Purpose and Scope of Valuation and Contents of Report) to improve valuation quality and reliability. Moreover, on-site audits are conducted at real estate appraisal firms are being carried out on the valuations of the securitized real estate.

In July 2009, the “Forum for Building Up the Real Estate Investment Market that is trusted by Investors”, comprised of related industries, professionals and administrative agency, made proposals for real estate investment market revitalization. The proposal was mainly made toward Japan REITs, identifying the necessity to reorganize Japan REITs through mergers and other measures and, to reinforce the governance on Japan REITs, the finance of Japan REITs and promotion of real estate investment by retail investors, pension funds and other investors. From February to March 2010, three Japan REITs consolidations were performed.

Through organizing a training course on real estate securitization and providing advisory support to business operators, liquidation of land and regional revitalization were promoted through accumulation of the knowledge of the how-to relating securitization, development of human resources in rural area and expansion of the regional real estate securitization market.

As the real estate field plays an important role in addressing the environmental problems, MLIT is now discussing the framework on how to assess the economic value of the real estate from the environmental aspect while considering international trends on responsible real estate investment, which takes ESG (Environment, Society, Governance) into account when making investment decisions.