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Policy Watch

Draft order adds new business-district height permit to pre-sale approvals

MLIT's draft cabinet order would add the new business-facility district height-limit exemption permit to the approvals that must be in hand, where the work requires them, before agents advertise or contract for unfinished buildings, and would lengthen the list of restrictions agents must explain; comments close 5 November.

By Tokyo Brief DeskOct 7, 20262 min read
Stylised office building massing under a dashed height-limit plane beside a stack of approval stamps and a checklist of icons

The land ministry's draft cabinet order would add a permit that disapplies height limits in a new type of urban-planning district to the list of approvals real estate firms must hold, where the construction work requires them, before they advertise or contract for buildings still under construction. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) opened comment on 6 October; submissions close on 5 November 2026.

The permit trigger

The order implements the law amending the Urban Regeneration Special Measures Act and other laws (Law No. 23 of 2026), promulgated on 27 May 2026. That amending law lets planners designate "specified business facility guidance districts" within city-function guidance areas. The draft adds the district's height-limit exemption permit (Building Standards Act, Article 60-4, paragraph 2 proviso) to the approvals listed in the Real Estate Brokerage Act order. Under that Act, a licensed firm may not advertise or contract for a building under construction until the permits needed for the work, such as a development permit or building confirmation, have been obtained. The same addition goes into the order under the Real Estate Specified Joint Enterprise Act. The permit applies within these districts, not nationwide.

What agents must explain

Before a contract is concluded, licensed agents must have a transaction specialist explain legal restrictions to the buyer or tenant. The draft adds the new district's building restrictions, landscape regeneration agreements, unique-appeal maintenance agreements, disaster-prevention facility management agreements and the new "specified unique-appeal buildings" to that list. MLIT's reasoning is that these carry building restrictions, successor-binding effect and notification duties for extensions.

Other changes

Where a district caps height by reference to the north-side road or neighbouring land, small rooftop protrusions would count toward building height. Private urban development projects that build specified business facilities would qualify for support from the private urban development organization named in the draft regardless of scale.

Timetable

MLIT's schedule shows cabinet approval in mid-November 2026, promulgation in late November and enforcement in late November. The draft text leaves the commencement day blank ("November ●").