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Tokyo is a case study in how zoning and deregulation on developments in urban centers has created a healthier real estate market: In Minato ward — a desira

Tokyo is a case study in how zoning and deregulation on developments in urban centers has created a healthier real estate market: In Minato ward — a desirable 20 sq km slice of central Tokyo — the population is up 66 per cent over the past 20 years, from 145,000 to 241,000, an increase of about 100,000 residents. In the 121 sq km of San Francisco, the population grew by about the same number over 20 years, from 746,000 to 865,000 — a rise of 16 per cent. Yet whereas the price of a home in San Francisco and London has increased 231 per cent and 441 per cent respectively, Minato ward has absorbed its population boom with price rises of just 45 per cent. And this is for a particularly popular part of Tokyo. In the 1980s, Japanese cities were experiencing the same inflated housing bubbles that U.S. cities are today. Their planning methods, moreover, were rooted in Western notions about separating uses and limiting density. The federal government recognized that these regulations were the problem, so in 2002, it passed the Urban Renaissance Law. The law stripped municipalities of the ability to control private property. As a result, owners can build a variety of uses on their land, regardless of resistance from local bureaucrats or neighbors. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/scottbeyer/2016/08/12/tokyos-affordable-housing-strategy-build-build-build/&refURL=https://www.reddit.com/&referrer=https://www.reddit.com/ https://www.forbes.com/forbes/welcome/?toURL=https://www.for...

masklinn 9y ago
It's less deregulation (Japan still has strict zoning and housing regs) and more improved regulations e.g. less exclusive zoning (no zoning for only single-occupancy, residential zoning allowing small commercial buildings like offices & shops, …) This is in fact completely western zoning, just not american zoning which I expect is what Forbes really means when they talk about "Western notions about separating uses and limiting density": these concerns exist in european zonings but not even remotely to the extent that they do in "Euclidian" US zoning.
lhopki01 9y ago
Japan has had a falling population for a long time now. London has added 1.7 million people in that time period. Property in Japan also isn't as attractive to foreign buyers. People seem to forget that property isn't like other investment classes. Everyone needs somewhere to live and it can only be built on land which is very scarce where the jobs are.
- latch 9y ago
  A little disingenuous to compare London to Japan. Population in Tokyo has also been increasing yet house prices not so much (1) Japan and Tokyo do housing right. Pricing largely stays the same, quality of living increases. I absolutely don't mean this about you, but the general sense that I get is people largely don't want to admit someone else is doing things better. People are convinced that their city/state/country is really special and any problem they have are just problems that clearly have no solution. If a solution did exists, obviously, they'd have it. It's ego and pride. (1) https://www.ft.com/content/023562e2-54a6-11e6-befd-2fc0c26b3c60?mhq5j=e6 https://www.ft.com/content/023562e2-54a6-11e6-befd-2fc0c26b3...
  - lhopki01 9y ago
    Something that only happened when population growth stopped and the economy stagnated. Before that there were massive property bubbles.
- nosuchthing 9y ago
  People seem to forget that property isn't like other investment classes. Other investment classes provide value from services or production. Speculative real estate relies on artificial scarcity (local laws preventing building upward) is extracting value from suppressing more construction for more people.
  - lhopki01 9y ago
    >Other investment classes provide value from services or production. Like gold or bitcoin? >Speculative real estate relies on artificial scarcity (local laws preventing building upward) is extracting value from suppressing more construction for more people. There are many cities where they build upwards massively but the property prices increase massively. See Beijing or Shanghai. Actually compare China now to Japan in the 80s and you see lots of similarities. When I say property isn't like other investment classes I mean it shouldn't be. People need places to live and if left to the market the lower end of the market will just be left out on the street or in horrific housing conditions. The only solution will be government building of housing. IE compare Singapore with Hong Kong.

masklinn 9y ago

It's less deregulation (Japan still has strict zoning and housing regs) and more improved regulations e.g. less exclusive zoning (no zoning for only single-occupancy, residential zoning allowing small commercial buildings like offices & shops, …) This is in fact completely western zoning, just not american zoning which I expect is what Forbes really means when they talk about "Western notions about separating uses and limiting density": these concerns exist in european zonings but not even remotely to the extent that they do in "Euclidian" US zoning.

lhopki01 9y ago

Japan has had a falling population for a long time now. London has added 1.7 million people in that time period. Property in Japan also isn't as attractive to foreign buyers. People seem to forget that property isn't like other investment classes. Everyone needs somewhere to live and it can only be built on land which is very scarce where the jobs are.

latch 9y ago
A little disingenuous to compare London to Japan. Population in Tokyo has also been increasing yet house prices not so much (1) Japan and Tokyo do housing right. Pricing largely stays the same, quality of living increases. I absolutely don't mean this about you, but the general sense that I get is people largely don't want to admit someone else is doing things better. People are convinced that their city/state/country is really special and any problem they have are just problems that clearly have no solution. If a solution did exists, obviously, they'd have it. It's ego and pride. (1) https://www.ft.com/content/023562e2-54a6-11e6-befd-2fc0c26b3c60?mhq5j=e6 https://www.ft.com/content/023562e2-54a6-11e6-befd-2fc0c26b3...
- lhopki01 9y ago
  Something that only happened when population growth stopped and the economy stagnated. Before that there were massive property bubbles.
nosuchthing 9y ago
People seem to forget that property isn't like other investment classes. Other investment classes provide value from services or production. Speculative real estate relies on artificial scarcity (local laws preventing building upward) is extracting value from suppressing more construction for more people.
- lhopki01 9y ago
  >Other investment classes provide value from services or production. Like gold or bitcoin? >Speculative real estate relies on artificial scarcity (local laws preventing building upward) is extracting value from suppressing more construction for more people. There are many cities where they build upwards massively but the property prices increase massively. See Beijing or Shanghai. Actually compare China now to Japan in the 80s and you see lots of similarities. When I say property isn't like other investment classes I mean it shouldn't be. People need places to live and if left to the market the lower end of the market will just be left out on the street or in horrific housing conditions. The only solution will be government building of housing. IE compare Singapore with Hong Kong.