2018/1/15

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Introduction of

urban development systems

in Japan

January 31, 2018

Shin Aoki Overseas Development Promotion Office

Urban Renaissance Agency

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★ Contents

> Introduction of J-CODE and UR

> Brief introduction of Land Readjustment systems in Japan

> Examples of Land readjustment projects in Japan

- Koshigaya Laketown project

> Summary

- Strategy of establishment of LR systems in Vietnam

Introduction of J-CODE and UR

Outline of J-CODE

Law and regulation Instrument and system

supply Construction

Real estate

development

Energy supply Financing

Planning & design

Team Japan

Name: Japan Conference on Overseas Development of Eco-Cities (J-CODE)

Date of establishment: October 2011

Objective:

To create eco-friendly and self sustainable urban cities in Asian countries

using technology and experience accumulated in Japan

Total coordinator: UR

4

Urban development project as a package (from upstream to downstream of the project)

J-CODE mission:

J-CODE members (Vietnam Working Group)

5

AEON Mall CO. LTD. NIPPON KOEI CO.LTD.

Atsumi & Sakai NIPPON STEEL KOWA REAL ESTATE CO. LTD.

Azusa Sekkei Co., Ltd. Nishimura & Asahi

CTI Engineering Co., Ltd. Nomura Real Estate Development Co. Ltd.

Daiwa House Industry Co. Ltd. Oriental Consultants Global Co. Ltd.

Fujita Corporation ORIX Corporation

Fukuda and Partners Co. Ltd. OSAKA Gas Co. Ltd.

HASEKO Corporation Parking Management Organization, Ltd.

Hinokiya Holdings Co., Ltd. Raysum Co. Ltd.

Hitachi, Ltd. SEKISUI CHEMICAL CO. LTD.

IHI Corporation Sekisui House, Ltd.

Industrial Marketing Consultants Co. Ltd. SHICHIRO CORPORATION

Japan Real Estate Institute SHIMIZU CORPORATION

JGC CORPORATION Sumitomo Corporation

KAJIMA CORPORATION Sumitomo Forestry Co. Ltd.

Marubeni Corporation Sumitomo Realty & Development Co. Ltd.

Mitsubishi Corporation TAISEI CORPORATION

Mitsubishi Estate Co. Ltd. Takashimaya Company, Ltd.

Mitsubishi Jisho Residence Co. Ltd. TAKENAKA CORPORATION

Mitsui Fudosan Co. Ltd. The Nikken Kensetsu Kogyo Shimbun

Mizuho Bank, Ltd. Tokyo Gas Co. Ltd

Mori Building Co. Ltd. Tokyo Tatemono Co. Ltd.

MORI TRUST CO. LTD TOKYU CORPORATION

NAKABAYASHI CONSTRUCTION Co. Ltd. TOKYU LAND CORPORATION

NIHON SEKKEI, Inc. TOSHIBA CORPORATION

NIKKEN HOUSING SYSTEM LTD Toshin Development Co. Ltd.

NIKKEN SEKKEI CIVIL ENGINEERING LTD UR Linkage Co. Ltd.

NIKKEN SEKKEI LTD YACHIYO ENGINEERING Co. Ltd.

NIKKEN SEKKEI RESEARCH INSTITUTE

Whole J-CODE members: 57 companies (as of January 2018)

Vietnam WG: 36 companies

J-CODE Regular members

Urban problems and solutions in Japan Stage Urban problems Solutions

Shortage of housing stocks due to the population

concentration in urban areas Massive supply of housings and residential land

(Example: Tama Newtown)

Serious traffic congestion due to increasing numbers

vehicles on roadsNewtown development in suburban areas

High economic growth era

(1960-) Shortage of infrastructure (electricity and water supply)

due to rapid urbanization

Infrastructure improvement and development of

legislative systems for realizing urban policy

Emergence of environmental pollution of air and water Pollution and flood control measures

Flood problems in urban area

Increasing demand for good quality housing due to the

high standard of livingImproving housing standards

Abandoned industrial areas in the city center due to

industrial restructuring Utilization of abandoned industrial areas

Stable growth era (Example: MM2)

(1980-) Increasing awareness of environmental issues Development of recycling measures for resource

Urban development with water and green environment

(Example: Koshigaya Laketown with reservoir)

Increasing needs of reduction of environmental

impacts on urban development Realization of the eco-city/ smart-city

Matured era (Example: Nagareyama New Urban Area)

(2000-)Aggravation of declining birthrate and aging population

Countermeasures for declining birthrate and aging

population in urban planning

(Example: Bonage Yokohama)

Deteriorated housing stocks Revitalization of existing housing stocks

(Example: Toyoshiki-dai Apartment Complex)6

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Key technology for Eco-City projects

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Outline of Urban Renaissance Agency (UR)

8

Iwate Office*

Miyagi & Fukushima

Office*

*: Office for support of

earthquake disaster

restoration

Main branch offices excl. field offices

Organization style: Independent Administrative Institution Capital:1,072 billion yen (approx.9.6 billion USD) (as of March.31 2017) Date of establishment: July 1, 2014 Headquarter office: Yokohama-city, Kanagawa, Japan Validating laws:

Act on General Rules for Incorporated Administrative Agency Law on Urban Renaissance Agency, Incorporated Administrative Institution

Supervising authority: Ministry of Land, Infrastructure,

Transport and Tourism (MLIT) Number of staff: 3,199 (as of Apr.1 2017) Official web site: http://www.ur-net.go.jp

Eastern Japan Offices

Central Japan Office

Kyusyu Office

Kansai Office

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Business transition of UR in line with policy purposes

Improvement of living

environment and city

functions

Urban Renewal

(Urban renaissance)

Mass supply of house and

land for housing

1955 1975 1981 1999 2004

Japan Housing Corporation

Land Development

Corporation

Japan Regional Development Corporation

Housing and Urban

Development

Corporation

Urban

Development

Corporation

Urban

Renaissance Agency

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UR has 63 years’ history and change the missions according to the request of

Japanese society.

【UR Mission】

To create cities of beauty, safety and comfort where people can shine

UR promotes urban renewal in cooperation with the private and

local public organizations.

・To promote of nationwide urban renaissance “from the

northernmost to the southernmost tip of Japanese Archipelago”

・To coordinate of concept, planning and requirements

・To participate in the project as the partner

UR provides affluent living space through considerate maintenance and management of

rental housing

・To manage and maintain rental housing in response to the trust endowed upon us by

residents of 740,000 housing

・To promote to live in urban centers, securing housing for

elderly people, creation of child rearing environment

UR supports disaster restoration and strengthening of disaster

prevention functions

・ To promote creation of disaster-resilient cities

UR supports creation of safe and comfortable suburban life

・ To respond aging society with fewer children, environment-friendly, safe and secured

town development

・ To realize attractive living in suburbs and local cities

・ To complete new town development business

Urban renewal (Urban renaissance)

Living environment

Disaster restoration

Suburban environment

Makuhari Bay Town (Chiba Pref.)

Kohoku New Town (Kanagawa Pref)

Toyosu 2nd District（Tokyo）

Outline of present business pillars of UR

10 10

Recovery Image of Onagawa Town

（Miyagi Pref.）

New Town

281projects

41,500 hectares

Housing Houses Supplied

1.58 million units

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Achievements of UR

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Brief introduction of Land Readjustment systems in Japan

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Implementation of area development

Acquisition method ・ The whole land in a project

area is purchased.

・ Massive amount of money is required for land purchase.

・ Land owners and lease holders cannot stay in the project area

Land Readjustment method ・ Both public and private sectors

participate in the project

・ Land is not purchased in principle

⇒ Initial costs of a project are low

・ Land owners and lease holders can remain in a project area

Unique method of area

development in Japan 13

Methods of area development in Japan

General method for area

development

(Definition = the meaning and purposes of LR)

Land Readjustment project means to alter the shape and

land conditions of lots and to install or improve public

facilities in accordance with this law in a city planning area

in order to provide better public facilities and to increase

the usage of each lot. (Article 2 of LR Law in Japan, 1954)

What is Land Readjustment (LR)?

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《Image of LR project》

Before the project After the project 14

After

Mr.A’s lot before land readjustment Before 300㎡

Contribution for financial land Contribution for public facilities

●Cost for relocation of

building and compensation

●Cost for construction of

roads, parks, etc.

●Survey and design costs

●Miscellaneous

Project cost ●Capital from disposition of financial land ●Shared defrayment of public facilities by management authority

●Shared defrayment

●National subsidy

●Expenses for prefecture

●Expenses for city, town, and village

●Levy

●Miscellaneous (loans etc.)

Resources

200㎡

Mr.A’s lot after LR

project (replot)

100㎡

Contributed portion

of land

Financial framework of LR method

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Disposal of financial land

Va

lue

Va

lue

Ａ Ｂ Ｃ

Ｇ Ｆ Ｅ Ｄ

Ａ Ｂ Ｃ

Ｇ Ｆ Ｅ Ｄ

After Before

Financial framework of LR method

Land value increase of each plot

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Is it reasonable in

your country?

Basic idea of LR

Land value

increase by urban

development

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Before the project After the project

Acreage A 100 B 75

Land price a 1,000 e 2,000

Total value aA 100,000 eB 150,000

Increase ratio=2,000/1,000=2.000

Proportional ratio=150,000/100,000=1.500

a e

Before the project (A)

Land value before and after the LR project

Land p

rice o

f plo

ts

After the project (B)

aA eB

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Acreage

Calculation of land value

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Financial land

Land for public

facilities

Philosophy of LR

Partial return of

development benefit

Increase of land value

through the Land

Rreadjustment project

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As of March 2013

LR Projects in Japan

Implementing Body Number of

Projects

Acreage of

Project Sites

Projects under

Previous City

Planning Law

1,287 67,872ha

Individuals and

LR Associations

7,326

139,829ha

Public Sectors 3,274 159,125ha

(Public Corporations) (307) (28,808ha)

Total 11,887 366,825ha

Data on LR Projects (MLIT)

Various implementing bodies

Private sectors

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Summary of LR method in Japan

LR project = Public-Private Partnership (PPP) scheme

1. Comprehensive urban development (infrastructure development

and increase of land-use)

2. Preservation of land titles before and after the project

3. Wide applications (project purpose, scale, acreage, existing

condition, implementing body)

4. Fair procedure and distribution of development benefits and costs

Merits of LR project

1. Understanding of landowners to get consent from them is the key

factor of the project

2. Development processes are complicated. (relocation, construction

(infrastructure and land for buildings)

⇒ It takes long time to complete the project.

Demerits of LR project

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Examples of Land readjustment projects in Japan

Koshigaya Laketown

Tokyo

22km

Koshigaya Laketown

○Railway access

To Tokyo Station 45 minutes

To Shinjuku Station 41 miutes

○Road access

To Tokyo Gaikan Expressway 2km Yokohama

Narita

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Location

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> The urban sprawl was

approaching to this area.

> Water retention function of

this area was reduced by

new roads and buildings.

> It meant risk of flooding

was increasing.

> Large-scale rainwater

retention reservoirs were

required.

Flooding of this area in 1991

Background of the project

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Moto-Arakawa River

JR Musashino Line

Nakagawa River

Status of Land Use: Paddy Field 78.2% Land for Public Utilization 13.8%

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Urbanization Control Area

Aerial view before the project

500m

1km

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Legend

Detached houses

Apartment houses & condominiums

Planned residential area (apartment houses & condominiums)

Offices & commercial areas

Planned building area (commercial facilities)

Industrial areas

Roadside business

Other public facilities

Educational facilities

Railway facilities

Parks

Greenery

Collective agricultural land

Pedestrian ways

Reservoirs

Canals

Land Use Plan after

the project: Public Facilities 78.4 ha

(34.8%)

Housing 85.8 ha

(38.0%)

Facilities 21.2 ha

(9.4%)

Others 40.2 ha

(17.8%)

Introduction of multi-functional facilities

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25

upstrea

m

upstrea

m

downstre

am 25

Installation of rainwater retention reservoir

City landscape （artificiality)

Rural landscape（nature）

Station

Play Pleasure

Play

Cherry blossom

Vista from station

Old scenery

Urban bustle

Grass area

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Stage Landscape

Living

Station & condominium

Pedestrian way

Combination of urban & rural landscapes

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One of the largest shopping mall in Japan

・Site Area : approx. 337,000 sq.m

・Shop Area : approx. 245,000 sq.m

・Parking ： 10,400 cars

・Tenants : 710 (Supermarket, Retail Shops,

Restaurants, Cinema complex)

・Open : Autumn 2008

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AEON LakeTown

Eco-conscious model brock

Wind flow

Water flow

Greenery

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Roof-top solar system of

condominiums

CO2 Emission : 20% off

Adoption of eco-conscious technology & materials

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Grass Area

Stage

Pier

Biotope

Pedestrian

way

Lake (reservoir)

Commercial

facility

Park

Station

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Reconstruction of natural environment

Image of Biotope

Creation of waterfront recreation area for citizens

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Pavement of pedestrian

ways is made from

crushed concrete

blokes, which have

water retentive function.

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Application of “Reduce, Reuse & Recycle”

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Leisure time activities in reservoir

Landowners’ land

before the project:

100

Framework of LR project

(Conditions)

Contribution ratio: 40%

Land acquisition ratio: 40%

Land price:

Before the project= 100

After the project = 200

Landowners’ land before the project: 100

Land acquisition:

Landowner’s land: 60

UR’s land s : 40

Contribution:

Landowners: 36

UR: 24

Land value (landowners)

Before the project: 100*100= 10,000

After the project:

Land sale 40*100= 4,000

Land value after the project

36*200= 7,200

4,000+7,200=11,200

Before the project < After the project

Land

acquisition

ratio: 40%

Contribution ratio: 40%

UR replot after

the project:

24%

Landowners’ land after

the project: 36%

Landowners’ land after

the acquisition: 60%

UR plots after the project: 40%

(Replot: 24%, Financial land 16%)

Contribution for public facilities: 24%

Contribution for financial land 16%

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UR plots before the project (Red area: Land acquisition plots by UR)

UR plots after the project (Black area: UR replots and financial land)

Plot relocation of UR land

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UR acquired 40% of the project area

prier to the project.

UR possessed 40% of the project area

after the project.

(Replot: 24%, Financial land 16%)

General residential

area

General residential

area

General residential

area

General residential

area

General residential

area

Roadside equipment

Roadside equipment

Shared agricultural area

Shared agricultural area

Commercial/business etc. facilities

Collective housing

Planned housing

Planned housing

Planned housing

Planned housing

Planned housing

Planned housing

Planned housing

Planned housing

Planned construction

Planned construction

Industrial

Joint use area

（Distributing

Facility）

Koshigaya Minami High School

Legend

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Plot relocation of private land

Landowners sold 40% of the project

area and contributed 40% of the

remained land. (They got 36% of the

previous land and several

compensation.)

Pre-existing privately owned land

Pre-existing privately owned land (with buildings)

Privately owned replotting land

Summary of this presentation

Strategy of establishment of LR systems in Vietnam

(1) Implementation of pilot project

1) Selection of pilot project sites (concise & effective projects)

2) Consultation of organization concerned

(national and local governments, international and local institution, public and

private sectors)

3) Actual implementation of pilot projects

(2) Establishment of legal framework

⇒“Implementation of pilot project” and “establishment of legal framework” should be

considered reciprocally.

(3) Other consideration

1) Legal procedure (land recovery, compensation, support, resettlement)

2) Administrative procedure (staff training of government officers)

3) Implementing body (public & private sectors)

4) Financial provision (subsidy)

5) Persuasion of present land owners (merit for landowners)

6) Taxation & registration systems

Strategy of establishment of LR systems in Vietnam

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