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Yuko Okazawa, Urban Specialist Tokyo Learning Development Center World Bank Group Managing Urban Expansion: Case of Tokyo

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Page 1: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

Yuko Okazawa, Urban SpecialistTokyo Learning Development CenterWorld Bank Group

Managing Urban Expansion: Case of Tokyo

Page 2: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Thriving Metropolis: Urban Expansion of Tokyo

Source: https://perihele.wordpress.com/2014/04/18/mapping-japanese-city-spaces-greater-tokyo/

Highly concentratedTaito Ward exceeding 320/haRural areas at the peripheryLess extensive Tokyo Harbor

Largest urban area by 1970“Fingers” of development along railTokyo proper losing population to suburbs

Redensification of the Tokyo properGreater Tokyo population reaching30 million excluding rural areas

Page 3: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Thriving Metropolis: Urban Expansion of Tokyo

Rapid expansion took place first before WWII, and then in 50s and 60s. Tokyo stabilized since, but the suburbs continued.

Source: National Census, 2015

Page 4: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Adverse Impacts due to Densification

“Commuting Hell” Traffic Congestion

Air Pollution Frequent Floods and Water Contamination

Waste Management Issues

Inadequate and Dense Housing

Page 5: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Day-Night Dynamics of Population Density

person/ ha Tokyo London Paris New York

Daytime Center 596 285 151 327

Fringe 185 97

Suburban 54 29 45 17

Nighttime Center 89 106 215 267

Fringe 158 114

Suburban 146 64 67 85

Day/Night ratio, Center 6.7 2.7 0.7 1.2Source: Tokyo National Statistics 2010 (Nighttime population), Tokyo Metropolitan Government Survey 2006 (Daytime population)London 2010 Mid-Year Population Estimates (Nighttime population), NOMIS Official Labor market Statistics (Daytime population)Paris Institut National de la Statistique et des Etudes Economiques, Chiffres cles sur un territoire (Nighttime and Daytime population)New York US Census Bureau, State & County QuickFacts (Nighttime and Daytime population)

Page 6: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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High Public Transport Modal Share in Tokyo

Source: Shigeyuki Sakaki, Senior Transport Specialist, WBG

Tokyo and its surrounding areas are highly reliant on public transport. In the metropolitan area (34M population), more than 50% of commuters use railway. The modal share of public transport is about 80% within the wards of Tokyo (8M population).

Page 7: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Integration of Transit and Land Use in Tokyo

Source: National Person-Trip Survey, Tokyu Land Corporation

Most areas are walking distance from stations… High modal share of public transporttranslates into high land value along lines…

Actually has poor road network…

Car Ownership in Japan

Rapid expansion of rail network affected slow onset of motorization, and vice versa…

Relatively expensive Poor road conditions Rapid expansion of rail

Page 8: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Policy Alternatives explored by Tokyo for Managing Urban Expansion during high growth

Decentralize employment

Create new land

Mobilize untapped land supply

Increase housing supply

Subsidize housing demand

Reduce commuting time

Subsidize commuting

Reclaim transport costs

Page 9: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Key Spatial Policies/ Regulations Shaping Urban Form

Source: The Urban Planning Formulation and Management Capacity Development Project (CupCup), JICAHall, P. 1975. Urban and Regional Planning. London: Routledge.

Foreseeing the next 10 years

Page 10: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Key Spatial Policies/ Regulations Shaping Urban Form

Land use classifications

Stru

ctur

es/ f

acili

ties s

eeki

ngDe

velo

pmen

t per

miss

ion

• Land use zones: Regulate structures according to agreed upon standards.

• Secure land: Regulate development on land which infrastructure is planned (not at construction stage) and reduce land acquisition costs downstream.

• Special zones: Establish special zones which development is encouraged.

Page 11: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

Was Tokyo able to contain urban sprawl?

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1) Over-designation of Urbanization Promotion Areas (UPA)

2) Failure of proposed land tax reform

3) Loopholes that allowed sprawl development in UPA/ UCA

4) Very loose planning regulations in “white” areas

Page 12: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Opportunities for private sector railway development and integrated urban development

Opportunities for Private-led railway and housing development

Land Market & Regulations

Freehold land tenure system

Weak regulations on land use and development

Demographic & Social Backdrop

Strong housing demand due to mass urban in-migration around 1950s

Slow onset of motorization

Capabilities

High ability of the private sector in railway and housing development

Page 13: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Opportunities for private sector railway development and integrated urban development

Railway

• Mutual extension operation

• Replacement of railroad crossing

• Public direct investment into railway facilities

• Development incentives (subsidies, tax exemption, low interest loans)

Housing + Railway

• Matured Land Readjustment system and multiple special legal arrangements

• Application of various Land Value Capture schemes

• Public provision of housing complex for middle income urban workers

Key Policy Instruments for Private-led Development

Line A Line B

Continuous Grade Separation

Before After

Page 14: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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What is Land Readjustment?

Land Readjustment Urban Redevelopment Projects

• Enables the public and private sector to carry out necessary development projects to serve public interests through provision of infrastructure and service delivery.

• Can be done through land use conversion schemes (below) or whole purchase schemes.

Page 15: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

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Land Readjustment developed…

1/3 of all urban area in Japan (1/4 of area in Tokyo’s Wards developed through LR)

1/2 of all principal residential parks in Japan (parks amount to 14,000 ha)

1/4 of roads designated in City Plans (roads amount to 11,000 km)

1/3 of station plazas at major train stations in Japan (about 900 station plazas)

Page 16: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

Post “bubble” and In-migration to Central Tokyo

• Relatively affordable land prices (supply-demand plus economic downturn since 1990s) leading to abundant supply of housing and office space

• Deregulation of high-rise buildings (c.f. FAR)

• Increase of elderly population in suburbs lacking mobility/ accessibility

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Page 17: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

Rapid Changes in Demographics

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

800 1000 1200 1400 1600 1650 1700 1750 1800 1850 1900 1950 2000 2050 2100

(万人)

(年)

(1338)

(1716 to 45)(1868)

2030116.62 million peopleRate of aging 31.6%

205097.08 million people Rate of aging 38.8%

2100 (Moderate-range estimate)

49.59 million peopleRate of aging 41.1%

2100 (High-end estimate)64.85 million people

2100 (Low-end estimate)37.95 million people(1185)

7.50 million people

8.18 million people

(1603)12.27 million

people

31.28 million people33.30 million

people

(1945)71.99 million

people

Establishment of the

Kam

akura Shogunate

Meiji R

estoration

Establishment of

Murom

achi Shogunate

Kyoho R

eforms

Establishment of

Edo Shogunate

End of the W

orld War II

(2010) 128.06 million peoplePeak in 2008

128.08 million peopleRate of aging 22.1%

(Prompt report for 2015)127.11 million people

(Ten thousand people)

(Year)

Source: Ministry of Land, Infrastructure, Transport and Tourism

Page 18: Managing Urban Expansion - World Bank · Managing Urban Expansion during high growth. Decentralize employment. Create new land. Mobilize untapped land supply. Increase housing supply

Implications of Urban Sprawl and Future Prospects

What does all of this mean for Tokyo today, situated in a country facing population decline and the significant need for infrastructure maintenance and renewal?

How will we manage these assets spread out to the suburbs which are facing major fiscal challenges due decreasing population leading to less defrayers/ payers of these services?

What will happen to the self-contained “bed towns” or “new townships” very far from central Tokyo which are now dominated by over 60s?

These are all important questions that must be answered today - the costs of urban sprawl need to be paid.

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