2022 was a year of major changes, both internally and externally, starting with the spread of the novel coronavirus infection and Russia's invasion of Ukraine, and incidents (the attack on former Prime Minister Abe, the Old Unification Church issue, the New Defense 3 Documents issue, etc.).
Since entering 2023, there have been concerns about stagflation due to all kinds of price increases in the global economy, and there have been slight revisions to monetary easing and low interest rate policies in the Japanese economy, but economic trends have become unstable as electricity, gas, and water charges continue to rise, and food prices have continued to rise.
In terms of real estate market conditions, the vacancy rate for office buildings in central Tokyo remained flat at around 7%, but remained high; on the other hand, second-hand condominium prices in central Tokyo's 6 wards (Chiyoda/Chuo/Minato/Shinjuku/Bunkyo/Shibuya) rose for 14 consecutive months, and the desired sales price (70 square meters equivalent) exceeded 100 million yen for the first time, and investment funds (overseas funds) flowed in and reached the level since the bubble period. (Source: Tokyo Kantei)
Under such circumstances, revitalization of regional revitalization projects utilizing the Vacant House Countermeasures Special Measures Law and the PFI (Promotion of Development of Public Facilities by Utilizing Private Funds, etc.) Act is expected in 2023.
The “vacant house demolition and elimination” business based on the “on-site investigation rights, recommendations, orders, and proxy execution” of local governments stipulated in the Vacant Houses Act is still only a few municipalities such as Katori City, Fukuoka City, Kyoto City, and Tokyo in Chiba Prefecture, but funds that invest in companies and properties that embark on the vacant house business are also emerging. Also, since there are cases where solutions to regional issues are being sought through industry-academia collaboration, it is expected that it will expand as one of the regional revitalization projects in discussions with local governments in the future.
Local governments implement PFI projects based on the PFI Act mainly in urban areas (Kanagawa Prefecture, Saitama Prefecture, Chiba Prefecture, Tokyo Prefecture, etc.), but even in rural areas, it is expected that they will develop and expand parks and customer attraction facilities, further improve the ability of tourist attractions to attract customers, and revitalize regional revitalization projects. Incidentally, in the Tokyo metropolitan area, Kasai Rinkai Aquarium (Edogawa-ku), Chatan Park PFI (Shibuya-ku), Nagai Uminote Park Soleil Hill (Yokosuka City), Tourism and Local Products Center Yottoko (Tokorozawa City), Senba Park PFI (Mito City), etc. are currently promoting business. (Source: Ministry of Internal Affairs and Communications Regional Power Creation Group Regional Development Office and Nikkei Shimbun News)
Incidentally, it is thought that the role of a real estate appraiser is not only to evaluate the proper price of real estate, but also to promote the utilization of real estate and contribute to the healthy development of the real estate economy.
In other words, it can be said that real estate appraisers are expected to participate in and contribute to urban planning, regional revitalization, and revitalization projects for urban planning and redevelopment projects through investigation work, consulting, advisory work, etc.
Reprinted from “Weekly Building Management” by Building Management Institute Co., Ltd. (with permission)
