## ☐ Trends and policies of real estate industries

The condition of the real estate market is deteriorating, with the number of contracts concluded declining and a buildup of inventory. In addition, the market for securitization of real estate is now maintaining a downward trend, following the subprime credit crisis in 2007.

The ministry is taking measures for the smooth enforcement of the Act for Execution of Defect Warranty Liability under the HQAA, which will be enforced on October 1, 2009, and for properly responding to the Act on Prevention of Transfer of Criminal Proceeds, which was fully enforced in March 2008.

In order to invigorate the real estate market and realize smooth and invigorated transactions, the ministry takes steps to ensure the transparency of the real estate market, for example, by disclosing the locations, dimensions and prices of real estate traded through the Real Estate Comprehensive Information System. In addition, in order to stimulate demand for real estate as a part of economic measures, the ministry proceeds with the better use of taxation, including the establishment of new special measures concerning taxation on capital gain associated with land and other assets acquired during FY2009 and 2010.

## ☐ Rejuvenating the construction industry

The construction industry is directly responsible for the improvement of housing and social capital, and is one of the basic industries, accounting for around 10% of both GDP and the total employment. However, the construction industry, too, faces unprecedented difficulty in business conditions, due to an decrease in building investment, sharp hikes in steel, fuel oils and other materials, financial institutions' tighter screening of potential borrowers, and the negative effects from deteriorating business conditions in the real estate sector.

MLIT established the “local construction business management

reinforcing loan scheme,” in order to promptly support community-based construction businesses by facilitating funding for them. The scheme is designed to facilitate increased liquidity in construction businesses’ receivables associated with public work contracts, including unfinished parts of public work projects. The scheme started operation in November 2008.

In order to enhance the competitive edge, the ministry (1) inaugurated projects to revitalize the construction business and local communities that support and contribute to the invigoration and recovery of the construction sector and the local community through cooperation between various industries, by making better use of human resources, equipment and expertise held by community-based small and medium-sized construction businesses, (2) started emergency consultation services for construction businesses to properly respond to inquiries about their business management, including questions about complex and sophisticated issues, and (3) established a system to dispatch experts, including lawyers, to enterprises.

In addition, to promote the construction industry, the ministry promotes the proper use of ordinary construction joint-venture groups, facilitates the group formation of small and medium-sized, middle-ranking construction businesses, and proceeds with the coalition in projects. It also promotes the invigoration of joint projects carried out by cooperative associations and others and the project reform movement.