Housing site development projects including capital area new towns have been used since 1980s as a main method for housing site supply. And it is defined by law that the housing site supply for national housing construction should be provided on the c...
Housing site development projects including capital area new towns have been used since 1980s as a main method for housing site supply. And it is defined by law that the housing site supply for national housing construction should be provided on the cost for housing site creation.
As the cost for housing site creation, which can be estimated after the completion of a construction project, should be estimated before the completion of a construction project because of the permission of combining a land development project and a housing construction project to ease the pressing housing shortage in urban areas by the government, it is a very important issue what we should do for the estimation of the cost for housing site creation.
Thus the Ministry of Land, Transport and Maritime Affairs established 「the cost for housing site creation estimation and standard」in 2006 to decide a specific estimation standard of the cost for housing site creation.
The purpose of this study is to consider the status and problems for the 40 housing site development projects and innovation city projects whose cost for housing site creation were published based on the cost for housing site creation estimation and standard established by the government, to understand the characteristic of cost for housing site creation, and to find out the implication of policy decision. As the results the characteristics of cost for housing site creation are as follows.
First, housing site cost is the most important factor in the decision of housing supply price. The supply standard price of the housing site furnished in area for housing site development is cost for housing site creation and thus the supply price of the housing furnished in housing site is decided by cost for housing site creation.
Second, though the extents of influence on construction cost by the items to estimate construction cost are different according to regions, project sizes and areas for charged supply lots, costs for sites has the largest influence and infrastructure construction cost, countermeasure costs for relocation, cost for creation and capital cost have relatively large influence. Area ratio for charged supply lots has a direct influence on construction cost estimation.
Third, land fee, direct labor cost, sales costs, general management costs and other costs do not have large influences.
Fourth, construction costs show big differences according to regions but construction cost differences according to project sizes and areas for charged supply lots are not so big.
A study on the characteristics of construction cost drew the following implication. First, proper controlled standard for officially assessed land prices which becomes cost estimation standard of appraisal for land compensation should be made. And adjustment criteria and limit of other factors for land compensation evaluation should be made.
Second, a standard for infrastructure construction cost should be made for the cost that exceeds the burden standard defined by law such as metropolitan transportation fee not to be included in construction cost. And the law by which local government and others can cover local tax increment caused by a project is needed as a method to fund.
Third, costs for crearion has a large influence on construction cost. But there is no standard and authority is delegated to the developer. And thus as there is no reasonable deterrent means for excessive designing, the upper limit of development cost should be made by enactment of standard costs for creation.
Fourth, allocation of construction cost among direct labor cost, sales costs and general management costs is in proportion to direct cost and thus allocation of construction cost is much more in capital area because of high land compensation cost and infrastructure construction cost. It has a problem in equity. Thus it is more reasonable to revise the allocation method of construction cost from allocation in proportion to direct cost to allocation based on unit per project area.
Fifth, when calculating charged supply area, facility compounds which have specific purposes such as elementary, junior-high and high schools should be classified as areas for charged supply lots. And thus free-charged supply lands will be decreased.
Sixth, as there is difference between construction cost that is estimated in advance and realistic value afterwards, finding a method to settle up construction cost at the project completion stage is needed for fair construction cost estimation.