Japan Experiences First Rise in National Land Prices in Eight Years

2015 saw land prices in Japan rise nationally for the first time in eight years, according to data released today by the Ministry of Land, Infrastructure, and Transport.

Despite a shrinking population, countrywide land prices grew 0.1%. Although more than two thirds of areas outside major cities experienced a net decline, the country’s tourism boom and easy financing spurred enough demand in urban centers to drive up commercial land prices, which showed the greatest appreciation nationally at 0.9%. Unsurprisingly, the majority of these gains were found in the Tokyo and Osaka areas, although popular tourist destinations such as Hokkaido benefited as well. In Japan’s three major metropolitan areas (Tokyo, Osaka, and Nagoya in Aichi Prefecture) commercial land prices rose 2.9%. Industrial land prices in the three metros rose 0.9% versus remaining flat nationally, while residential land prices appreciated 0.5% compared to a 0.2% nationwide drop.

More detailed breakdowns of the Ministry’s annual report coming soon.

Sources:

“2016 Land Price Public Announcement [Japanese],” Ministry of Land, Infrastructure, and Transport, March 22 2016

“Japan Land Prices Rise for the First Time Since 2007 on Tourism,” Kathleen Chu, Bloomberg Business, March 22 2016

“Japan’s land prices up for 1st time in 8 yrs amid tourism boom,” Kyodo News, March 22 2016