The rosenka land values for 2019 were announced by the National Tax Agency on July 1. Nationwide, land values increased by 1.3%. This is the fourth year in a row to record a year-on-year increase. The rate of growth has also expanded, following 0.7% in 2018, 0.4% in 2017 and 0.2% in 2016. This is the first time to see four years of consecutive growth since 1992.
Land values have been pushed up by a recent boom in foreign tourist numbers, and strong demand for both hotels and office space. Polarization between major urban centers and regional areas continues, however, with 27 of Japan’s 47 prefectures recording a drop in land values.
On a prefecture level, Okinawa was in top spot with 8.3% growth. The region has benefitted from high tourist arrivals. Tokyo saw 4.9% growth, Aichi Prefecture (including Nagoya) saw 2.2%, while Osaka saw 1.9%.
In Okinawa, rosenka land values alongside Kokusai-dori in Naha City reached 1,030,000 Yen/sqm, a 39% increase. This is the first time in 20 years to have a location with land values over 1,000,000 Yen in Okinawa. Ishigaki Island saw an 8.0% increase, while Miyako Island saw a 4.3% increase.
For the 34th year in a row, the most expensive land in Japan was located alongside the Kyukyodo Building in Ginza, Tokyo. The rosenka land value in 2019 reached 45,600,000 Yen/sqm (approx. 39,100 USD/sq.ft), up 2.9% from 2018.
Niseko topped the survey sites nationwide based on percentage growth with a location in Hirafu recording a 50.0% increase. Last year a location in Niseko recorded 88% growth. The area around Kyoto City’s Minami-za Kabuki Theatre saw a 43.5% increase.
Land values in Nagano Prefecture dropped for the 24th year in a row with a 0.3% decline in 2019. Kyu-Karuizawa Ginza-dori Street bucked the trend with a 2.2% increase – the first increase in 11 years. Neighboring Niigata Prefecture saw a 0.8% decline in 2019. This was the 26th year in a row to see a decrease.
About the Rosenka land values:
Rosenka land valuations are conducted by the National Tax Agency on land fronting major roads and cover approximately 330,000 sites across Japan. Valuations are done on January 1 each year, with results announced in July. 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, although this is not always the case.
Source: National Tax Agency, July 1, 2019.