Photo/Illutration Tokyo Governor Yuriko Koike speaks about the metropolitan government’s “affordable housing” plan on Nov. 7. (Ryo Yamagishi)

In response to rising real estate prices in the nation’s capital, the Tokyo metropolitan government plans to supply about 300 units of “affordable housing” starting next fiscal year targeting households with children.

The rents are expected to be roughly 20 percent lower than market rates.

“This initiative will help create a society where people who wish to have children can do so with peace of mind,” Tokyo Governor Yuriko Koike said at a news conference on Nov. 7.

According to the metropolitan government, four groups, including Nomura Real Estate Development Co. and SMBC Trust Bank Ltd., have been selected as candidates to operate a public-private partnership fund that will supply the affordable housing.

This will be Japan’s first public-private fund dedicated for that purpose, according to the metropolitan government.

The metropolitan government will invest 10 billion yen ($65 million) in the fund, with private entities contributing a similar amount.

By lowering the rate of return on its investment, the government can help to reduce rents for the acquired properties.

The four selected groups have proposed themes such as child-rearing support and using vacant homes. They all plan to set rent levels at about 75 to 80 percent of market rates.

The metropolitan government will sign contracts with these groups, form the fund around February next year, and begin supplying housing from the following fiscal year.

Although the target is child-rearing households, income limits and other eligibility conditions will later be finalized with the operators.

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