### c. Tax system utilization

The FY2014 Tax Reform has implemented extensions, etc. of the applicable periods of the preferential measure for taxing the long-term transfer income from the transfer of land, etc. for reclamation, etc. of superior housing lots (income taxes, etc.) and the measure for terminating the scheme of additional taxation for the gains on the transfer of land, etc. (corporate taxes, etc.).

### d. Pursuing the emergence of a new real estate market tailored to the needs of a new era

Real-estate appraisal standards, etc. have been updated after discussions at the Real-Estate Appraisal Work Shop, Land Policy Workgroup, National Land Development Council in the light of the needs for real-estate appraisal, such as a globalized real-estate market, an advancing stop-type society and an evolving real-estate securitization market.

On-site inspections of real-estate appraisers and appraisal monitoring surveys concerned mainly with facts about securitized real-estate appraisals have been conducted to enhance appraisal reliability.

The presence of many seismically inadequate buildings and concerns over tight power supplies, such as those triggered by the Great East Japan Earthquake, dictate the formation of good-quality aseismic and eco-friendly real estate. To accelerate the introduction of private funds to finance the quake-proofing of buildings and the renewal of urban facilities, a Bill on Partial Amendments to the Real Estate Specified Joint Enterprise Act was just submitted to the 183rd session of the Diet, which authorizes special-purpose companies (SPC) fulfilling a certain set of requirements to conduct real estate specified joint enterprises.

The Japan Is Back initiative (decided at a Cabinet meeting on June 14, 2013) calls for “Development, Promotion and Dissemination of Guidelines Relating to Acquisition and Operation of Housing, etc. for the Elderly to Utilize Healthcare REITs (during FY2014)” to take advantage of private funds. “Economic Measures for Virtuous Cycling” (decided at a Cabinet meeting on December 5, 2013) also recommends “Promotion of Financing for Healthcare Facilities through Promoted Listing of Healthcare REITs on the First Section of the Tokyo Stock Exchange, etc. (Financial Services Agency, Ministry of Land, Infrastructure and Transport, Ministry of Health, Labour and Welfare).

Moreover, the Green Building Promotion Review Committee and its working group were established in order to expand and popularize “Green Building” in Japan. The MLIT publicized information about their discussions of the measures and approaches that had been recommended in the past proposals, through Green Building Online Portal $ ^{Note} $ .

## 9 Building a Sustainable Construction Industry

## (1) Conditions surrounding the real estate business

The construction industry not only takes charge of the development, maintenance, management, etc. of local infrastructures but underpins local economies and employment, keeping local communities safe and secure on the front line in support of the national life and social economy.

In the meantime, various problems, such as the diminishing population of skilled labor in the field, the declining number of young workers employed and aging workforces, have emerged as a consequence of dumped order taking and resultant constraints on the subcontractors amid rapidly shrinking construction investment. Building a sustainable construction industry from a mid- and long-term viewpoint should be essential to fully addressing the urges to get prepared for disasters, mitigate their effects when they occur, combat aging facilities, maintain infrastructures, keep buildings quake-resistant and so on.

Figure II-6-3-14 shows the trends in construction investment and the number of licensed contractors and employees.