Abstract
This paper examines an impact when a limitation on floor-area-ratio (FAR) is increased in suburban housing district. To
this purpose, an empirical analysis, with land price change after floor-area-ratio in suburban Tokyo had been extensively
increased in 2004, is suggested. Land price change around increased floor-area-ratio area is examined by OLS, and the
result shows that there is external diseconomy within 150 meters from increased floor-area-ratio area in the district. It is also proved that the land price drops approximately 4.8 percent more in such points. However, the net benefit of increasing floor-area-ratio is positive if the area is large enough, since enlarged floor has more value than external diseconomy.
