According to the National Tax Agency, rosenka land values across Japan in 2015 fell for the 7th year in a row, although the decline appears to be bottoming out. This year nationwide land values dropped by 0.4%, which is an improvement from 2014 which saw values drop by 0.7%. In Tokyo, rosenka values increased by 2.1%, after seeing a 1.8% rise in 2014. In Osaka, values increased by 0.5%.
A rapid increase in foreign tourists and a boost in investment in central Tokyo from foreign funds has helped to pull up property values and retail rents.
Midosuji Boulevard in front of Osaka’s Hankyu Department Store saw rosenka land values rise by 10.1% from last year to 8,320,000 Yen/sqm, while Meieki Dori Avenue in front of Nagoya Station saw values increase by 11.5% to 7,360,000 Yen/sqm.
Ginza remains in top spot for 30 years running
The most expensive land in Japan is near the Kyukyodo Building by Ginza Station in Tokyo. The rosenka value of this land in 2015 was 26,960,000 Yen/sqm, up 14.2% from the year before. The land has been the highest valued location in the country for the past 30 years.
This land is now sitting at 70% of it’s peak of 36,500,000 Yen/sqm recorded in 1992. Following the collapse of the bubble, the value dropped to 11,360,000 Yen/sqm by 1997, but gradually began to recover. By the mini-bubble in 2008, it had reached 31,840,000 Yen/sqm, but dropped again following the onset of the global financial crisis.
The rosenka land value for Omotesando Hills alongside Omotesando Dori Avenue was 8,820,000 Yen/sqm in 2015, up 8.2% from 2014.
About the Rosenka land values:
Rosenka land valuations are conducted on land fronting major roads. Valuations are done on January 1 each year, with results announced on the following July 1st. The values are used to calculate inheritance and gift tax and typically represent around 80% of the chika-koji (assessed land values), which may then in turn represent around 60 ~ 80% of actual market values.
NHK, July 2, 2015.
National Tax Agency, July 1, 2015.