alt Hacker NewsThere are other aspects beyond simply being more permissive. I recall reading for example that property transfer tax is remarkably less on bare land, enough so that when travelling in Japan you will regularly notice bare lots for sale, as it is beneficial for the seller to tear down a lot before they sell it. This sort of thing encourages churn of housing, and coupled with liberal zoning, enables an accelerated increase in denser building. Tbh it probably encourages lower construction costs since more people are doing construction.
IMO in this whole conversation, whether discussing any jurisdiction not just japan, impacts of zoning is an over emphasized and tax policy under emphasized (ie. almost never discussed).
I have a hard time believing that a tax code that incentives destruction in any capacity is a good thing.
If the land is more valuable without a structure the current owner has natural incentive to do that, or someone else has incentive to buy, demolish and re-list.