JapanWhat is the housing performance indication system?
The Housing Performance Indication System is a mandatory evaluation framework in Japan that rates new residential buildings on 10 performance criteria—including structural safety, fire resistance, and energy efficiency—using standardized metrics and third-party certification.
What the Law Says
The Housing Performance Indication System is established under Japan’s Act on Promotion of Quality Assurance in Housing to ensure transparency and reliability in housing quality. It requires builders to evaluate and disclose objective performance data for new residential buildings before sale or lease.
The system applies to all newly constructed detached houses, condominiums, and other residential buildings intended for sale or lease. Builders must have an independent, registered evaluation agency assess the building across 10 defined performance categories — such as structural stability, fire safety, durability, thermal insulation, and accessibility.
Each category is assigned a numerical rating (e.g., Level 1–3 or points-based scores), and the full evaluation report must be provided to buyers or lessees before contract signing. The evaluation certificate is valid for three years from issuance.
The law mandates that this information be disclosed in writing and included in advertising materials. Failure to comply may result in administrative guidance or public disclosure of noncompliance by the Ministry of Land, Infrastructure, Transport and Tourism.
Statutory TextThe Minister of Land, Infrastructure, Transport and Tourism shall establish standards for evaluating the performance of housing and promote the indication of such performance to ensure proper understanding by users.
— Act on Promotion of Quality Assurance in Housing, s. 8 — Promotion of Housing Performance Indication
Statutory TextA person who intends to sell or lease a newly constructed dwelling house shall, prior to concluding a contract therefor, indicate the performance of the dwelling house in accordance with the standards prescribed by the Minister...
— Act on Promotion of Quality Assurance in Housing, s. 9 — Obligation to Indicate Performance
What to Do
Confirm that the builder has obtained a valid Housing Performance Evaluation Certificate from a registered evaluation agency.
Review the full 10-category evaluation report before signing any sales or lease contract.
Verify that all advertised performance claims (e.g., 'Earthquake-resistant Level 3') match the official certificate.
Request written disclosure if not proactively provided — it is legally required before contract conclusion.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.