TRENDS IN LAND OWNERSHIP AND LAND TRANSACTIONS

Ministry of land


: http://tochi.mlit.go.jp/h20hakusho/chapter6/chapter06_eng.html


Chapter 6 Trends in Land Ownership and Land Transactions

Section 1 Trends in Land Ownership
1. Land Ownership by the Private Sector
(Current Status of Land Ownership by Individuals and Corporations)


Approximately 85% of the total land area in Japan falls into two categories: "developed land/agricultural land" and "forestry/fields". In Fiscal Year 2006, 37% was owned by the public sector (27% by the Central Government and 10% by local government); and 63% by the private sector (see Chart 6-1-1)

Chart6-1-1 Land Ownership
("Developed Land and Agricultural Land" and "Forestry and Fields") by Sector
Source: Calculated by Ministry of Land, Infrastructure, Transport and Tourism from "Monthly Report of Statistics of Fiscal and Financial Figures" by Ministry of Finance, and "Survey of Current Status of Public Utilities" by Ministry of Internal Affairs and Communications
Note1: Public sector ownership is calculated from "Monthly Report of Statistics of Fiscal and Financial Figures" and "Survey of Current Status of Public Utilities". Private sector ownership is calculated by deducting areas of public sector ownership from the total which was researched by the Ministry of Land, Infrastructure, Transport and Tourism.
Note2: Figures represent areas as of March 31 of each year.
Note3: The total area of Japan includes streets and roads that are not shown in the. These account for approximately 5.80 million ha (14.28 million acres). In 2006, the total area of Japan was 37.79 million ha (93.38 million acres).


As of 1 January 2007, 85.6% of land owned by the private sector was held by individuals and 14.4% by corporations (see Chart 6-1-2).


Chart 6-1-2 Proportions of Land Ownership by Individuals and Corporations (by Land Use)
Source: "General Report of Prices of Fixed Assets" Ministry of Internal Affairs and Communications
Note 1: Proportions are based on land areas exceeding tax exemption.
Note 2: Stock farms are included in paddy fields and other cultivated lands.
Note 3: Others includes salt fields, lands of mineral springs and lakes.
Note 4: Figures are as of January 1 of every year.

As for the regional situation, in the Metropolitan areas (i.e. the 23 wards in Tokyo and the other Cabinet Ordinance Designated Cities), 26.0 % of all such land was owned by corporations. The proportions of land owned by corporations are higher in the Metropolitan areas (see Chart 6-1-3).


Chart 6-1-3 Proportion of Land Ownership by Individuals and Corporations
(in 2007)
Source: Calculated by Ministry of Land, Infrastructure, Transport and Tourism from "General Report of Prices of Fixed Assets" Ministry of Public Management, Home Affairs, Posts and Telecommunications
Note1: Proportions are based on land areas exceeding tax exemption
Note2: Figures are as of January 1 of every year.
Note3: Regions are as follows:
Metropolitan areas: the areas of 23 wards in Tokyo and the Cabinet Ordinance Designated Cities
Urban areas: areas within cities other than the Cabinet Ordinance Designated Cities
Town and village: areas occupied by towns and villages in Japan

(Trends in the Number of Landowners)

The number of landowners in Japan in 2007 was 38.74 million. By land use, the number of owners of developed land was 32.95 million. Owners of residential land (a sub-category within developed land) comprised 27.07 million. The number of owners of paddy fields and other cultivated lands was 9.92 million, and of forestry and fields 5.42 million (see Chart 6-1-4).

The number of landowners in the Metropolitan areas was 5.67 million. By land use, the number of land owners of developed land amounted to 5.90 million (see Chart 6-1-5).


Chart 6-1-4 Trends in the Number of Landowners by Land Use (in Japan)
Source: Calculated by Ministry of Land, Infrastructure, Transport and Tourism from "General Report of Prices of Fixed Assets" Ministry of Internal Affairs and Communications
Note1: For residential lands, figures of normal residential land for 1970, and of small residential land for years on and after 1980 were used.
Note2: Stock farms are included in paddy fields and other cultivated lands. Others include salt fields, lands of mineral springs and lakes.
Note3: Figures in upper columns are the change ratios indicated in the columns on the left. Note4:"The number of landowners by land use" is the number of owners of land exceeding tax exemptions. When one person holds land categorized under different uses, that person is counted as one person in each land use category. Also when one person holds land in two and more different cities, towns land villages, that person is counted as one person in each land use category in each city, town and village."The number of land owners" is the number of persons with liability for taxation of fixed assets of land. When one person holds more than two areas of land under different land use in each city, town and village, the person is counted as one person, but where he holds land in more than two different cities, towns and villages, that person is counted as one person in each city, town and village. Therefore, the actual number of landowners is smaller than "the number of land owners" in this chapter

Note4: "The number of landowners by land use" is the number of owners of land exceeding tax exemptions. When one person holds land categorized under different uses, that person is counted as one person in each land use category. Also when one person holds land in two and more different cities, towns and villages, that person is counted as one person in each land use category in each city, town and village. "The number of land owners" is the number of persons with liability for taxation of fixed assets of land. When one person holds more than two areas of land under different land use in each city, town and village, the person is counted as one person, but where he holds land in more than two different cities, towns and villages, that person is counted as one person in each city, town and village. Therefore, the actual number of landowners is smaller than "the number of land owners" in this chapter.

Chart 6-1-5 Trends in the Number of Landowners by Land Use (in Metropolitan Area)
Source: same as chart 6-1-4
Note: same as chart 6-1-4

2 Land Owned by the Public Sector

(Current Status of Land Owned by Central Government)

By the end of Fiscal Year 2006 (end of March 2007), the area of land registered on the Asset Registration Sheet of the Central Government (i.e. land owned by the Central Government) was 8.770 million ha (21.67 million acres), representing 23.2% of total area of Japan (see Chart 6-1-6). Lands owned by Central Government are categorized into two types: lands owned for the purpose of Central Government administrative activities (Administrative Property) and lands owned for other purposes (Non-Administrative Property).


Chart 6-1-6 Trends in Central Government Assets (Land)
Source: "Comprehensive Statements of Increase and Decrease and Current Value of National Property" by Ministry of Finance
Note: Area figures are rounded to omit fractions. Therefore, the total figures in each column and the areas in the charts do not necessary correlate.

(Current Status of Land Owned by Local Government)

As at the end of Fiscal Year 2006 (end of March 2007), land owned by local government (including land owned by the Foundation of Land Development (tochi-kaihatsu-kikin) etc) totaled 3.070 million ha (7.586 million acres), of which 1.040 million ha (2.570 million acres) was owned by prefecture governments and 2.030 million ha (5.016 million acres) was owned by city, town and village governments, representing 8.1% of total area of Japan (2.8% by the land owned by prefecture governments and 5.3% by the land owned by city, town and village governments) (see Chart 6-1-7).


Chart 6-1-7 Current Status of Land Owned by Local Government (Areas)
Source: "Survey of Public Facilities" by Ministry of Internal Affairs and Communications
Note: Land for streets, bridges, rivers, seashore, port and harbor, and ports for fisheries is not included.

3. Current Status of Value of Assets of Land

The value of assets of land in 2006 was JPY 1,228.0 trillion (an increase of 0.5 % on the previous year) based on "Annual Report on National Accounts" (Chart 6-1-8).


Chart 6-1-8 Trends of Value of Land classified by Institutional Sectors
Source: "Annual Report on National Accounts" by Cabinet Office
Note: Figures in ( ) represents total net buying (total net selling) in each year

Section 2 Land Transactions

1. Trends in Land Transactions

(Land Transactions by Purchase and Disposal)

The number of land transactions (i.e. the number of freehold land transfer registrations) undertaken through purchase and disposal was 1,414,970 in 2007, a decline of 8.5 % compared to the previous year (see Chart 6-2-1).


Chart 6-2-1 Trends in the Number of Land Transactions by Purchase and Disposal
Source: "Annual Statistics of Civil Affairs, Litigation and Human Rights" Ministry of Justice
Note: Areas are as follows:
Tokyo region: Saitama, Chiba, Tokyo and Kanagawa Prefecture
Osaka region: Osaka, Kyoto and Hyogo Prefecture
Nagoya region: Aichi and Mie Prefecture
Other regions: areas other than the above

(Current Status of Transaction Parties)

In terms of total land disposals by parties, of the total areas of land disposals, in 2006 transactions involving individuals comprise about 33 %; while those involving corporations account for about 64 % (see Chart 6-2-2).
As for those parties involved in the purchase of land, in 2006 the areas of corporations purchasing land were 67%; while the areas of individuals doing so were 26 % (see Chart 6-2-3).


Chart 6-2-2 Current Status of Parties of Land Disposal (Areas)
Source: Preliminary analyze report from "Land Ownership Transfer Survey" by Ministry of Land, Infrastructure, Transport and Tourism
Note: The analysis was conducted on the basis of land transactions selected by random sampling, with a sampling rate of one in 50 transactions, from among land transactions conducted across Japan concerning which ownership transfer was registered.

Chart 6-2-3 Current Status of Parties to Land Purchases (Areas)
Source: Preliminary analyze report from "Land Ownership Transfer Survey" by Ministry of Land, Infrastructure, Transport and Tourism
Note: The analysis was conducted on the basis of land transactions selected by random sampling, with a sampling rate of one in 50 transactions, from among land transactions conducted across Japan concerning which ownership transfer was registered.
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(Current Status of Vendors and Purchasers in Land Transactions)

With regard to the status of vendors and purchasers, in proportional number terms in 2006, transactions between "individuals to individuals" decreased (see Chart 6-2-4).
On the other hand, in proportional area terms, transactions "individuals to individuals" decreased, (see Chart 6-2-5).


Chart 6-2-4 Status of Vendors and Purchasers in Land Transactions
(by the number of transactions)
Source: Preliminary analyze report from "Land Ownership Transfer Survey" by Ministry of Land, Infrastructure, Transport and Tourism
Note: The analysis was conducted on the basis of land transactions selected by random sampling, with a sampling rate of one in 50 transactions, from among land transactions conducted across Japan concerning which ownership transfer was registered.

Chart 6-2-5 Status of Vendors and Purchasers in Land Transactions (by Area)
Source: Preliminary analyze report from "Land Ownership Transfer Survey" by Ministry of Land, Infrastructure, Transport and Tourism
Note: The analysis was conducted on the basis of land transactions selected by random sampling, with a sampling rate of one in 50 transactions, from among land transactions conducted across Japan concerning which ownership transfer was registered.

Section 3 Size of Land Investment classified by Institutional Sectors

With regard to size of land investment by institutional sectors, according to "Annual Report on National Accounts", General Government was net buyers and Household, Non-financial Corporations and Financial Corporations were net sellers in 2006 (see Chart 6-3-1).


Chart 6-3-1 Trends of Size of Land Investment classified by Institutional Sectors