Economic Analysis of Housing Policy in Japan: Policy Concerning Housing Quality

This book analyzes housing policy in Japan, focusing on the quality of housing due to the government's success in increasing the volume through interest rate policy. It proposes housing monetary policy and subsidy policy to improve the quality of housing, using hedonic price function and the quality of houses. It also suggests the disclosure of information to calculate market clearing prices of houses and estimate the hedonic price index and rent index.

Format: Hardback
Length: 114 pages
Publication date: 27 October 2022
Publisher: Springer Verlag, Singapore

This comprehensive book delves into the realm of housing policy, exploring its intricate relationship with the quality of housing. The analysis is driven by the remarkable success of the Japanese government in expanding the housing stock through interest rate policy, as demonstrated by Vector Autoregession (VAR) analysis. Consequently, the primary focus of housing policy in Japan has shifted towards enhancing the quality of housing. This groundbreaking work stands as the first to examine and propose housing monetary policy and housing subsidy policies aimed at improving the quality of housing. By increasing the number of houses that are barrier-free and earthquake-resistant, these policies have the potential to significantly impact the lives of individuals.

Moreover, this book pioneers the valuation of housing using the hedonic price function and the quality of houses. Through the development and application of a valuation method outlined in this book, market clearing prices of houses can be accurately calculated, devoid of analytical and theoretical errors. To achieve this, the author proposes the disclosure of information, including offer prices and attributes, as a housing policy. Furthermore, this research introduces a novel method to estimate the hedonic price index and rent index, utilizing the quality of houses, for the first time in Japan. By employing hedonic price and rent functions, the author uncovers the extent to which differences in home ownership investment are influenced by variations in property information. This insightful finding underscores the importance of exploring appropriate valuation methodologies for houses.

The propositions presented in this book hold significant potential for companies to leverage the benefits of hedonic housing valuation and hedonic price and rent indexes. By adopting these frameworks, companies can gain a competitive edge, optimize their real estate investments, and make informed decisions that align with market trends and consumer preferences.

Weight: 371g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811949241
Edition number: 1st ed. 2022