The average land price rose for the first time in 33 years in more than half of surveyed rural areas in Japan, government data showed Tuesday, as the nation's economic recovery extends to asset values.
Across Japan, land prices in all categories as well as prices for residential land and commercial land as of Jan. 1 increased for the fourth straight year on booming inbound tourism and firm housing demand sustained by low interest rates.
According to the Ministry of Land, Infrastructure, Transport and Tourism, the average overall land prices nationwide climbed 2.7 percent from a year earlier.
"The upward trend is continuing as the economy moderately recovers," a ministry official said. "Investment demand for accommodation for foreigners and houses is also rising in tourist areas."
Land prices in more than half of the locations, excluding the metropolises of Tokyo, Osaka, Nagoya and their surrounding areas, last rose in 1992, shortly after the period of the country's asset bubble. At that time, prices increased in 5,183 locations, or 63.5 percent of those surveyed, according to the data.
In the latest survey, the prices rose at 6,706 locations, or about 50 percent of the 13,405 assessed. Prices in all categories were up 1.3 percent, while those for residential land grew 1.0 percent and for commercial land were up 1.6 percent.
As for residential-use land, average prices nationwide, including Tokyo, Osaka and Nagoya, increased 2.1 percent, while they rose 3.9 percent for commercial-use land.
The upward trend has continued since 2022. Before that, prices were depressed by the collapse of the investment bank Lehman Brothers in 2008, the 2011 earthquake-tsunami-nuclear disaster in northeastern Japan, and the COVID-19 pandemic which started in 2019.
In the three metropolitan areas, the average land price in all categories surged 4.3 percent, while it grew 3.3 percent for residential land and 7.1 percent for commercial land, surpassing the rate of increase from the previous year.
Prices for commercial land rose in 34 of the country's 47 prefectures, likely due to the impact of foreign tourists, the data showed.
Furano, a popular tourist destination in Hokkaido where foreigners buy vacation homes, recorded the steepest residential land price increase at 31.3 percent.
Another area in Hokkaido, Chitose, which has a booming semiconductor industry, saw the largest increase in commercial land prices at 48.8 percent.
Ishikawa Prefecture, meanwhile, suffered the sharpest fall due to the impact of a powerful earthquake that rattled the Noto Peninsula on New Year's Day in 2024.
By location, the main store of Yamano Music Co. in Tokyo's Ginza shopping district recorded the highest land price among the surveyed locations nationwide for the 19th straight year at 60.5 million yen ($407,000) per square meter, up 8.6 percent from a year earlier.
© KYODO
9 Comments
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sakurasuki
Any mention about inflation? Of course not.
Namahage
Maybe they think foreign tourists may want to buy it up, like around Niseko?
HopeSpringsEternal
Land prices up in YEN ONLY. Trying selling land and buying anything, especially real assets like food, energy, metals, etc., you'll find you're buying powers collapsed.
Land prices also not adjusted for inflation.
Anyone think aging depopulating country's land prices appreciate in "REAL" terms? Just a Govt. Con-Game.
chatanista
Anyone think aging depopulating country's land prices appreciate in "REAL" terms? Just a Govt. Con-Game.
Yeah I wonder how rapidly depopulating countryside can have appreciating prices. With the exception of a few desirable spots such as Niseko, Nagano, Okinawa..
Nibek32
Chinese are buying land up in Japan.
Cephus
"Land prices up in half of Japan's rural areas for 1st time in 33 years."
More land is needed to make farming cool again.
chatanista
Chinese are buying land up in Japan.
Lots of articles in certain media about that. Then again that is a world wide phenomena, not so different from what Japanese were doing during the bubble either. Comes in waves.
GuruMick
With a few exceptions, these are modest rises in single digit percentage growth.
I,d be interested to see the difference in yen value from the bubble until now.
If you bought in the bubble, you would never recover your investment.
kohakuebisu
This is a problem if foreign companies are buying up big chunks of forest etc.
Honda the ex-footballer tweeted a couple of months ago that foreigners shouldn't be able to buy land in Japan. If its a case of non-resident foreigners, I agree that there should be some checks, and possibly even restrictions which they have in several other countries like Thailand. It seems like buying land in Japan is a free for all.
Build costs have skyrocketed in Japan in the last ten years. We could not afford to do the build we did in 2007 at 2025 prices. We'd get a slightly better house, definitely better windows, but it would have cost around 50% more due to cost increases and the rise in consumption tax. I suspect this cost increase will affect far more people than the change in land prices.