Japanese real estate associations open new year with focus on sustainable cities

The Real Estate Association of Japan and the Real Estate Transaction Promotion Center (FRK), two major industry bodies representing Japan’s property sector, held a joint New Year’s reception on the 7th at The Okura Tokyo, a landmark hotel in central Tokyo.

The event was attended by real estate executives, members of Japan’s national parliament, and representatives from related industries.

Junichi Yoshida, Chairman of both the Real Estate Association of Japan and Mitsubishi Estate, during opening remarks; photo courtesy of R.E. Port News.

Opening the event, Junichi Yoshida, Chairman of the Real Estate Association of Japan, addressed recent government tax policy decisions affecting housing. He said that housing loan tax incentives had been the focus of the tax reform package finalized at the end of 2025.

Under the revised framework, incentives for newly built homes were largely maintained, while support for purchases of existing homes was expanded. He also noted that the overall system would remain in place for the next five years, calling it a positive step toward continuing to support homeownership among younger households.

Yoshida also raised concerns about rising construction costs and labor shortages, describing them as serious challenges for Japan’s cities. He warned that these pressures are already hindering urban redevelopment and could affect broader national priorities, including infrastructure renewal, disaster preparedness, and international competitiveness.

Addressing the issue, he emphasized the need for coordinated action by the construction industry, the real estate sector, and the government to promote sustainable urban development over the long term.

Turning to the condominium market, Yoshida reiterated the industry’s opposition to speculative short-term resales of newly built condominiums.

He said condominiums should primarily serve as long-term housing rather than short-term investment vehicles and stressed the importance of member companies properly implementing measures announced by the association last November to curb speculative activity.

Related Content: Industry body introduces voluntary rules to curb flipping of brand-new Tokyo condos (Patience Realty, November 2025)

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In a keynote address, Japan’s Minister of Land, Infrastructure, Transport and Tourism, Yasuyuki Kaneko, referred to major legal reforms affecting condominiums that were passed last year and will take full effect on April 1st.

The revised legislation is aimed at improving how condominiums are managed throughout their lifespan - from new construction to aging buildings - by making it easier for owners’ associations to approve major repairs or rebuilding projects.

The reforms also introduce mechanisms to deal with absentee or uncontactable owners, a common issue in older buildings, and strengthen pathways for the renewal or redevelopment of aging condominium stock. Kaneko said the government intends to actively promote better condominium management under the new legal framework.

The reception concluded with a toast by Yasushi Endo, Chairman of the Real Estate Transaction Promotion Center. He highlighted expanded tax incentives for existing homes under the latest tax reform, including relaxed minimum size requirements, higher loan limits, and longer tax deduction periods.

Endo said these measures are expected to provide a meaningful boost to transactions and investment in Japan’s existing housing market.

Source:

R.E. Port News (Japanese only)