provide relevant information by partnering with other business operators specialized in areas related to real estate transactions. Also, the MLIT revised the “price appraisal manual” used by real estate brokers for disseminating and embedding the approaches of the “Guidelines for Improving Building Assessments Relevant to Existing Homes” formulated in FY 2013, and put together points that should be noted by real-estate appraisers in conducting appraisal of existing detached houses.

## (4) Building a real-estate market tailored to new ages

The MLIT is striving to disseminate the revised real-estate appraisal standards, etc. (effective November 1, 2014), which reflects the diversified needs for real estate appraisals, such as those emerging from a globalized real-estate market, a progressing stock society and development of a 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.

Previously, properties acquired by REITs were mainly offices and residences. In recent years, however, types of properties acquired are expanding to hotels, logistics facilities, healthcare facilities and the like. Amid diversification of properties targeted by REITs, we published the guidelines for REITs that target real estate properties of hospitals in June 2015 and held seminars for business operators engaged in healthcare related businesses.

Also, in order to promote private-sector funding in updating urban functions such as earthquake resistance for buildings, we implemented model projects so that real estate regeneration projects utilizing the framework of the Amended Real Estate Specified Joint Enterprise Act (enforced on December 20, 2013) will be carried out, while working to spread real estate securitization in local districts by sending experts to real estate securitization projects taking place in regional cities.

In promoting the formation of earthquake resistant/green buildings, we decided to invest in environmental renovation projects for two buildings in FY 2015.

The MLIT held a meeting of the “Committee for the utilization of Public Real Estate (PRE) Using Real Estate Securitization and Other Techniques” and formulated guidelines for local public entities with the aim of promoting the utilization of PRE owned by local public entities and thus to achieve further expansion of the real estate investment market. The MLIT is determined to disseminate guidelines for local public entities and implement associated model projects.

The MLIT held the policy meeting on the real estate investment market, and put together recommendations on growth strategies for the real estate investment market concerning the growth target of doubling total assets of REIT, etc. to about 30 trillion yen by around 2020 and specific initiatives (March 2016).

## 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.

On the other hand, in association with a sharp decline in construction investment, the business environment surrounding construction companies has deteriorated and structural issues such as a decrease in the number of young people joining the industry and aging workforce.

In order for the construction industry to address these issues while fulfilling its roles in disaster prevention/mitigation, countermeasures against aging infrastructures, maintenance and earthquake resistance measures, it is crucial to make the industry sustainable over the medium to long term.

Figure II-6-3-15 shows the trends in construction investment and the number of licensed contractors and employees.