According to the MLIT, the standard land price (kijun-chika) across Japan’s three major cities of Tokyo, Osaka and Nagoya increased by 0.8% over the 12 months to July 1, 2014. This is the second year in a row to see an annual increase. In 2013, land prices increased by 0.1%. Residential land prices increased by 0.5% in the three major cities. This was the first time in six years to see an increase.

The nationwide average, however, fell by 1.2%. This is the 23rd year in a row to see a decline in land prices, although the rate of decline has shrunk (land prices dropped by 1.9% in 2013). Regional areas saw a 1.9% decline in land prices in 2014. This is the first time in 16 years that the rate of decline in regional areas has been as low as the 1% range. However, residential and commercial land values in regional areas suffering from declining populations have seen land prices drop further.

RESIDENTIAL 2010 2011 2012 2013 2014
Nationwide -3.4% -3.2% -2.5% -1.8% -1.2%
3 Major Cities -2.9% -1.7% -0.9% -0.1% +0.5%
Greater Tokyo -3.0% -1.9% -1.0% -0.1% +0.6%
Greater Osaka -3.6% -1.8% -1.0% -0.4% +0.1%
Greater Nagoya -1.3% -0.7% -0.2% +0.7% +0.9%
Regional -3.6% -3.7% -3.2% -2.5% -1.8%
COMMERCIAL 2010 2011 2012 2013 2014
Nationwide -4.6% -4.0% -3.1% -2.1% -1.1%
3 Major Cities -4.2% -2.2% -0.8% +0.6% +1.7%
Greater Tokyo -4.1% -2.3% -0.9% +0.6% +1.9%
Greater Osaka -5.3% -2.6% -1.0% +0.4% +1.5%
Greater Nagoya -2.9% -1.1% -0.5% +0.7% +1.5%
Regional -4.8% -4.8% -4.1% -3.1% -2.2%

TOKYO 

In Tokyo’s 23-ku, residential land prices were up 1.9% and commercial land prices were up 3.2%. All of Tokyo’s 23 wards as well as West Tokyo saw an increase in both residential and commercial land prices. Chuo-ku saw the biggest increase in land prices.

Commercial areas in central Tokyo and Osaka have benefited from increased investment from both domestic and foreign funds. Major redevelopment projects including Tokyo’s Toranomon Hills and Osaka’s Abeno Harukas have boosted land prices in surrounding areas.

Land price changes in Tokyo:

RESIDENTIAL COMMERCIAL
Minato +5.4% +4.9%
Shibuya +3.3% +4.6%
Shinjuku +2.8% +3.7%
Chiyoda +5.5% +5.3%
Shinagawa +2.8% +2.5%
Chuo +7.5% +6.4%
Meguro +2.6% +3.1%
Koto +2.8% +2.5%
Setagaya +1.6% +2.1%

Average residential land prices in Tokyo per square meter:

  • Chiyoda-ku: 2,270,000 Yen/sqm
  • Minato-ku: 1,265,600 Yen/sqm
  • Shibuya-ku: 941,500 Yen/sqm
  • Chuo-ku: 833,000 Yen/sqm
  • Meguro-ku: 656,600 Yen/sqm
  • Shinagawa-ku:  620,700 Yen/sqm
  • Shinjuku-ku: 568,300 Yen/sqm
  • Setagaya-ku: 520,400 Yen/sqm

Land prices in sample survey locations and price increases:

Residential:

Commercial:

Sources:
MLIT, September 18, 2014.

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