Japan’s residential land prices increase for first time in 9 years

For the first time in 9 years the nationwide koji-chika assessed land value for residential land across Japan increased from the previous year. In 2017, the residential land value increased by 0.022% from 2016. This is in contrast to a 0.2% decrease reported in 2016.

Of the 17,909 residential survey sites nationwide, 34% reported an annual increase in land values while 43% reported a decrease. The difference was particularly noticeable for land that was within walking distance to transport and shops compared to land that was further from the station and generally considered to be inconvenient. Residential land prices in regional areas decreased by 0.4%. This was the 25th year in a row to record a decrease, although the rate of decline has been shrinking for the past 7 years.


Land price movements in Tokyo

Ward % change in 2016 % change in 2017
– Chiyoda +9.4% +7.5%
– Minato +6.3% +5.2%
– Chuo +9.7% +6.2%
– Shibuya +3.4% +3.5%
– Chiyoda +7.4% +7.1%
– Minato +7.6% +6.7%
– Chuo +9.6% +9.8%
– Shibuya +7.6% +8.7%


Commercial land prices increased by 1.4%, which is a further improvement from the 0.9% increase reported in 2016. Land prices have been bullish thanks to an improving economy, low office vacancy rates, a booming foreign tourist industry and strong demand for hotels. Commercial values in the three major cities increased by 3.3%, while the four regional cities of Sapporo, Sendai, Hiroshima and Fukuoka recorded a 6.9% increase. The nationwide average is still at 80% of the value seen during the previous peak in 2008.

In Tokyo’s 23 wards, the average residential land value increased by 3.0% in 2017, after increasing by 2.8% in 2016. Commercial land values increased by 5.5%, after increasing by 4.8% in 2016.

The nationwide average land value across all land uses increased for the second year in a row.

[Left] Rokubancho, Chiyoda: The most expensive residential land site in Japan. [Right] Minami Azabu 4-9-6, Minato: The 6th most expensive residential land site in Japan and the residential land site that saw the highest increase in greater Tokyo in 2017.
The survey site in the greater Tokyo area that saw the biggest increase in residential land values was in Minami Azabu in the Hiroo neighbourhood in central Tokyo. The land at the survey site of Minami Azabu 4-9-6 had an assessed value of 2,750,000 Yen/sqm in 2017, up 10.9% from 2016 and up 52.8% from 2013. Nationwide, this site was ranked 5th in terms of highest increase in residential land values, outranked only by sites in Miyagi Prefecture.

In second position in greater Tokyo was the land underneath Homat Royal in Akasaka, which saw an increase of 9.9% in 2017. The residential site had an assessed land value of 3,680,000 Yen/sqm in 2017, up 50.8% from 2013 and up 106.7% from 2002. The land is directly across the street from the Hotel Okura Annex, and is benefitting from the large-scale redevelopment projects underway in the surrounding Toranomon and Akasaka area.

The top 5 increases in Tokyo’s 23 wards (Residential land):

  1. Minami Azabu 4-9-6: 2,750,000 Yen/sqm (+10.9%)
  2. Akasaka 1-14-11 (Homat Royal): 3,680,000 Yen/sqm (+9.9%)
  3. Akasaka 6-19-23 (Prestige Akasaka Hikawacho): 2,250,000 Yen/sqm (+9.2%)
  4. Nihonbashi Hamacho 3-28-2: 1,120,000 Yen/sqm (+8.7%)
  5. Nihonbashi Nakasu 2-3: 1,140,000 Yen/sqm (+8.6%)


The top 5 increases in Tokyo’s 23 wards (Commercial land):

  1. Ginza 6-8-3: 24,900,000 Yen/sqm (+29.0%)
  2. Ginza 2-6-7: 37,000,000 Yen/sqm (+28.9%)
  3. Ginza 7-9-19: 36,600,000 Yen/sqm (+27.1%)
  4. Ginza 4-5-6: 50,500,000 Yen/sqm (+25.9%)
  5. Ginza 3-7-1: 13,600,000 Yen/sqm (+23.6%)


The most expensive land in Japan


The most expensive residential land in Japan was Rokubancho 6-1 in Chiyoda-ku, which is west of the Imperial Palace. The land had an assessed value of 3,750,000 Yen/sqm in 2017, up 7.8% from 2016 and up 34.9% from 2013. The top 10 most expensive residential sites in Japan were all located in Tokyo’s Chiyoda and Minato wards.

The land under the Yamano Music Building in Ginza, Tokyo, was the most expensive commercial site in the country for the 11th year in a row. The land had a koji-chika land value of 50,500,000 Yen/sqm (42,000 USD / sq ft) in 2017, up 25.9% from 2016 and up 241.2% from 2002.

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released 2017’s koji-chika land values on March 21. The values are provided for 25,255 survey sites across Japan and based on a survey date of January 1 each year. Land values are assessed from land transactions and acquisitions of public utility sites and may differ from actual market values.

Source: The Ministry of Land, Infrastructure, Transport and Tourism, March 21, 2017.

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