Comment by SenHeng
10 days ago
Property taxes on land zoned for residential use are 6x more expensive if left bare. That’s why Japan has an akiya plague, because even a dilapidated building will keep taxes down.
I couldn’t find a more general article so here’s an example from a generic small town council.
https://www.city.inagi.tokyo.jp/en/faq/kurashi/1001633/10016...
You're right. I'm not sure how I got mislead or misremembered the dynamic here. I thought there was a specific clear tax benefit but doesn't seem so.
There are tax benefits for new buildings for a limited time so maybe that's what I was thinking about and became confused.
Leaving aside your mistake, you raise a great point. Why are there so many empty lots in central Tokyo for sale? It makes no sense financially! Maybe they assume they can tear-down the existing structure and sell it faster than the tax penalty will hit?