Note 1-16
- Japanese version
- English version
(16) However, the change of the environment surrounding the land market may have been raising the anticipated earnings demanded by investors. For example, if the land price is determined by the profitability of each plot of land, it may raise the uncertainty about investment in land in comparison with the case where the land price is determined based on the prices of surrounding land. At the same time, however, the establishment of the real estate liquidation market reduces the liquidity risk caused by land sales and risk premiums.