Japan Real Estate Institute Visiting to CIREA
On March 5th, 2019, Vice President and Secretary General Dr. Chai Qiangmet with Mr. HiharaHirofumi, President of Japan Real Estate Institute (JREI), and his delegation.Two sides held a cordial and friendly talk.
President Hihara Hirofumi briefly introduced the current situation of Japan real estate market as well as the changes of appraisal service in Japan.
Japanese government does not have a policy to control real estate market, their major job is to monitor the price of land. On January 1st and July 1steach year, Japanese central government and local governmentswill issue public land prices and benchmark land prices.Meanwhile, the land price of some statutory assessments such as inheritance tax and fixed assets tax will also be publicized and updated regularly, which are called “four prices in one place”.Japan’s Ministry of Land, Infrastructure, Transport and Tourism publishes “land price observation report” every quarter, which has been going on for more than 20 years. It aims at observing trends of land price in large and medium-sized cities across the country. The specific work is entrusted to JREI.JREI has also compiled a land price index to the public, which is updated twice a year, and this work has been going on for more than 100 years. According to the land price index, since the Japanese economic bubble burst in the 1990s, land prices in different regions of Japan have risen to various degrees, especially in the dominant areas of large cities. For example, the land price in the Ginza Area of Tokyo has exceeded the historical highest point.
Unlike other developed countries, Japan real estate transactions are still dominated by newly built houses. The main reason is that Japanese houses have a shorter life due to earthquakes and building material, so Japanese people are more willing to buy newly builthouses.In addition, on account of the declining population, aging becomes a serious problem, many elderly people live in nursing homes.Those facts mentioned above led to the current vacant second-hand housing in Japan has reached more than 10 million sets.So the government has introduced a number of policies to promote second-hand house transactions, such as second-hand housing seismic standards adjustment and residential performance testing.
Two sides also exchanged the impact of online inquiry on valuation. According to Mr. Hihara Hirofumi, Japan also has automatic valuations such as online inquiry and AI inquiry. However, he believes that this data analysis technology cannot replace artificial valuation. Because the authenticity of its data is difficult to test and the results are not reliable.Therefore, he is not worried that the business of JREI will be affected by online inquiry. They are mainly engaged in highly difficult valuation business such as securitization valuation and overall building valuation, as well as consulting business.
Vice President and SecretaryGeneral Chai Qiangbriefly introduced the progress of real estate securitization in China and the cultivation and development of China’s house leasing market,which visitors asked for.
Mr. Kobayashi Nobuo, Counselor of JREI and President of Real Estate (Shang Hai) Investment and Consulting Company, Ltd.,Mr. Hirota Yuji, Director of International Department of JREI, Mr. Otaya Toru, Associate Director of International Department of JREI, Ms. Han Ningning, Staff of International Department of JREI, Mr. Kasuya Koji, General Manager of Real Estate (Shang Hai) Investment and Consulting Company, Ltd., Mr. Lin shubin, Vice General Manager of Real Estate (Shang Hai) Investment and Consulting Company, Ltd., and Ms. Wang Xia, Vice Secretary General of CIREA also attended the meeting.
