Demand is finally starting to grow for 4-storey wooden-frame homes as future revisions to the inheritance tax laws in Japan leave the older generation searching for better ways to pass their wealth onto their children.
From January 1 2015, the basic deduction on inheritance tax for one heir will be reduced from 60 million Yen to 36 million Yen. This will increase the number of people who will become liable to pay inheritance tax. It is estimated that 1 in 4 people in Tokyo's 23-ku will have to pay the tax at some point.
However, for multi-family homes where several generations live under one roof, up to 80% of the property's taxable value can be reduced. Building a multi-family home can therefore provide some offset for future inheritance taxes.