1.) Log houses are defined as wooden structures built without the use of pillars or supports by laying logs sidewise to form the walls. They are likened to living homes; warm in winter and cool in summer, they absorb room moisture and are filled with a woody aroma.

2.) The image of log houses has long been one of a vacation or summer home, and the majority of log houses are in fact to be found in resort areas. The amendment of the Building Standards Law, however, has made it possible to build log houses in ordinary residential districts, provided that they are made somewhat fireproof. Their popularity has as a consequence grown among younger age groups and senior citizens, and demand for log houses as personal and second homes is soaring. Nevertheless, only around 1% of all houses are log houses, and estimates put the number built in 2000 at a mere 1,800.

3.) In the absence of any statistics, either from the government or the private sector, on the overall size of the market, we must rely on private sector statistics giving an indication of the scale of imports. The number of housing starts by members of the Japan Log House Association was 443 in FY1992 and 990 in FY1997. Demand in the past tended to be concentrated in areas of the business sector such as the hotel industry. Prompted by deregulation as mentioned above, however, one Japanese company has succeeded in selling several hundred homes, doubling the number of homes on the market.

4.) According to the Japan Log House Association, almost all log houses are imported and only a fraction are produced domestically. The log house was originally developed in the West, and products from Europe and North America are as a consequence somewhat ahead of Japanese-made products in terms of both design and materials. While the design of Japanese log houses has improved recently, foreign-made log houses remain strongly popular with younger age groups, and this trend is unlikely to change in the future.

5.) Figures from the Japan Log House Association indicate that imports from Finland and Canada account for approximately 70% and 20% of all imports, with the remaining 10% coming from countries such as the United States and Sweden.

6.) In order to enter the log house business in Japan, it is essential to carefully research the various characteristics?in terms of legal requirements, performance and price?of the Japanese market. In order to do so, it is best to form a partnership or joint venture with a Japanese company. It takes from two to five years for any problems arising following construction to be eliminated. During this period, maintenance (after-sales service) is of crucial importance. Falling moisture, for example, can cause the wood to shrink and gaps to emerge. Maintenance is therefore required to fill these gaps and maintain the home�fs airtightness. A Japanese partner is required in order to provide this after-care.

7.) Log house imports are covered by the Plant Protection Law, and must therefore be inspected when imported. In the event of the discovery of any harmful insects or eggs, the materials must be fumigated. Although there are no particular regulations concerning the importation of log houses, their construction is governed to the Building Standards Law. This law lays down standards concerning the site, construction, facilities and use of buildings, and is intended to protect the lives, health and property of the public. Under the Notice on Technical Standards on Log Construction enacted and enforced by what was then the Ministry of Construction in December 1990, log houses are required to:

* Be no more than two stories in height excluding the basement (up to two stories plus loft space).

* Have a total floor area of no more than 300 square meters.

3) Be of a height of no more than 8.5 meters.

Where these requirements are not met, authorization is required from the Ministry of Land, Infrastructure and Transport.

8. Log houses from Finland are of the precut type, and are made from conifers from cold regions with beautiful bark, such as European red pine and spruce. Canadian log houses come in both precut and handmade types. The handmade types are made from thick logs and have a heavy feel. Woods such as lodgepole pine, white pine and spruce are used. American log houses are precut. Their attractions are their uniform quality and the rich range of designs available. The main woods used are American cedar and pine.

‚X�DUses of log houses in Japan:

Summer houses 42.0%

Residences 55.1%

Other uses 2.9%

‚P‚O�DSizes of log houses in Japan:

30 square meters or under 2.9%

30-50 square meters 2.9%

51-80 square meters 15.7%

81-120 square meters 27.1%

121-160 square meters 34.3%

161-300 square meters 17.1%

‚P‚P�DTypes of log used in Japan:

Circular 10.1%

Square 31.9%

Plywood 56.5%

Standard ISO square 1.5%

‚P‚Q�DThe builders of log houses in Japan are as follows:

Owners 4.3%

Builders chosen by owners 1.4%

Builders of log houses for sale 94.3%

Very few people in Japan choose to build their own log houses, compared with 55.6% in France and 57.6% in Germany.

‚P‚R�DMakers of log houses in Japan are of a variety of types, including building contractors, forestry associations, sawmills and housing makers. Makers in some cases undertake construction themselves and deliver directly to consumers. In other cases, companies may enter purchasing agreements for the materials alone, with consumers left to find a builder themselves. In the case of forestry associations, the association undertakes manufacture only, and a sales company with a building subsidiary will do the building and sell the house to the consumer. Where a sales company does not have a building affiliate, it will sell a home having entered into a separate building contract with a building contractor.

‚P‚S�DImported log houses reach the market through a number of channels. If an importer/wholesaler has its own design and construction divisions, it will undertake construction itself and sell directly to the consumer. Where an importer/sales outlet sells only the materials, the consumer will enter a building contract with a building contractor. There are also cases where an importer is involved in importing only, and the consumer enters a building contract with a building contractor, and where the importer uses a building contractor as a subcontractor, and the consumer and importer enter a building contract.