The difficulty of purchasing residential accommodation caused by the sudden rise in land prices a few years ago, and the serious problems of increased feelings of social inequality led to the following recognition; "In a small country such as Japan, land is a limited resource and a basic necessity of life that is common to all the people, Thus the use of land enters the public domain and as such is subject to public restrictions". Some people have begun to believe it is necessary that this perspective be established as a principle for all citizens in order to solve the land problems.

The Basic Land Act which incorporates these ideas can be regarded as a constitution for land and property issues, prescribing basic laws. Central Government, 1ocal authorities, business and the general population need to understand, to observe as hared obligation, and to respect this Act in order to solve the land problems and, to make an affluent and comfortable society in which to reside.

The Basic Land Act was promulgated and put into force on December 22, 1989. It is unlike normal laws which restrict individual rights or impose regulations，but is known as a proclamation law, stipulating abstract ideas, including basic concepts. In this more 'philosophical' sense, it is a superior law to other land and property related laws.

The legislature and the administration are comprehensively revising related laws and systems, enforcing each sectoral policy and developing and promoting integrated land policy.

The Basic Land Act clarified fundamental ideas about land and property, laying down the obligations of Central Government, local authorities, business enterprises and the general population, and prescribes the basic rules concerning land and property.

This report focuses on four fundamental ideas, which from the principles of the Basic Land Act.


1.The Priority of Social Welfare in Land Use

Public benefits are to be given priority over the use of land when it is in the public interest, i.e. when 1) land is a limited and precious resource for the public, 2) it is a necessary resource for living and economic activities, 3) its use is closely related to other use of land and property, and 4) its value fluctuates according to conditions of the infrastructure, such as transportation, or other socio-economic factors.
In Japan, property rights are guaranteed under Sub-Article 1, Article 29 of the Constitution and in Sub-Article 2 it is prescribed that the restrictions can be imposed on specific property rights m the interests of public welfare However, the Basic Land Act more clearly clarifies the restrictions of property rights on land for the purpose of social welfare originally laid down in Article 1 of the Civil Code.


2.Compliance with Urban Planning

Land must be used properly according to the various environmental, social, economic and cultural conditions in each area. It must also comply with land use planning which was established to maintain a reasonable and rational use of land.

In Japan, at present the ownership of land is deemed as a prime asset, due to the fact the owner has the sole right to decide what to do with his/her land, for instance utilizing or leaving land unused. However, it should not be permitted to leave a site of land in a central urban area unused for a 1ong period of time, Land must be properly utilized and must be planned in harmony with the various conditions m the area.


3.Control of Speculative Development

Speculative development can be defined as the purchase and disposal of land and property to resell it in the future to make a profit, though potential capital gains will be realized during the time of holding.

Speculative development should not be permitted because it causes land prices to inflate higher than their actual value. This contravenes the role of land and property to enhance social welfare.


4.Burden of Planning Gain

Owners will be taxed if the value of their land has increased as a result of changes in the socio-economic conditions of the area.

For example, when land values rise because of the provision of a new road or railway station in the neighborhood, the increase of value is not the result of the owner's effort but was brought about by external causes, In order to maintain impartiality among people, an appropriate tax burden should be imposed on the land owner, as clarified in the Basic Land Act.