Temporary Parkings

In Japan, temporary parking lots on land awaiting sale or redevelopment are not just practical—they can also be a strategic move for tax reasons. Landowners often convert vacant plots into parking lots because undeveloped land incurs higher taxes compared to land in active use. By operating the space as a parking facility, even temporarily, the land is classified as “utilized,” which can significantly reduce the tax burden. This approach is particularly common in urban areas where land values and property taxes are high. It’s a smart way for owners to offset costs while waiting for the right buyer or preparing for construction. Eventually, when the land’s future is decided, these lots disappear, making way for new developments.