The Real Estate Transaction Associations held its 351st board meeting on September 26th, where it finalized tax reform proposals for the 2025 fiscal year.
Responding to Economic Challenges in the Real Estate Sector
Real Estate Transaction Associations President Junichi Yoshida, also Chairperson of the Board for Mitsubishi Estate. Photo courtesy of Mitsubishi Estate website.
Associations President Junichi Yoshida emphasized the growing importance of the real estate industry in addressing social challenges and driving sustainable economic growth.
He noted that, "While the industry plays a crucial role in enhancing urban competitiveness, improving disaster resilience, and providing better living conditions, we face significant challenges such as steep increases in construction costs and rising interest rates. These factors could have a serious impact on people's daily lives. To contribute to our nation’s economic growth through sustainable city planning, we are calling for tax reforms."
Key Tax Reform Requests
The Associations are advocating for several key tax policy changes, including:
Housing loan tax deductions: An extension of measures for households purchasing new homes, particularly single-family homes and young couples, related to borrowing limits and floor area requirements.
Urban redevelopment projects: The extension of the special exemption on property taxes for rights related to urban redevelopment projects.
Relocation from disaster-prone areas: The extension of the special exemption on real estate acquisition tax to promote relocation from disaster hazard zones.
BCP support: Tax incentives for base isolation and vibration control devices that enhance the Business Continuity Planning (BCP) functions of buildings.
Logistics and industrial land development: New tax support for innovative initiatives in large-scale logistics facilities and for collaborations between local governments and private enterprises to develop industrial land.
Promoting Green and Digital Transformation in City Planning
To accelerate Green Transformation (GX) and Digital Transformation (DX) in urban development, the Association is also pushing for:
Green space preservation: Extending the special exemption on property and urban planning taxes for certified urban green spaces.
Environmental performance upgrades: New tax incentives to support efforts aimed at enhancing the environmental performance of both new and existing properties as part of GX and DX initiatives.
Housing and Child-Rearing Support
The Association is also advocating for:
Renovation support for families: The extension of the housing renovation tax system for child-rearing households.
Improving housing stock: The extension of special measures aimed at renewing existing housing stock to create high-quality housing, along with new support measures for homebuyers.
Broader Tax Policies for the Real Estate Industry
Additional requests include:
J-REITs: Extending special measures for registration, license, and real estate acquisition taxes for J-REITs.
Unclaimed land: Continuing special provisions for addressing issues related to unclaimed land.
Property tax adjustments: Long-term solutions for adjusting the burden of land property taxes and eliminating double taxation on real estate.
Source:
R.E. Port News (Japanese only)
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