On March 27, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the Chika-Koji assessed land prices for 2018. According to the data, nationwide land prices across all uses increased by 0.7%, a 0.3 point improvement from 2017 and the third year in a row to record a year-on-year increase.Commercial land prices increased for the third year in a row with a 1.9% increase in 2018. Residential land prices increased by 0.3% in 2018. In 2017, residential land prices increased by 0.022%, showing the first increase in 9 years.

Notably, commercial land prices in Japan’s regional areas increased by 0.5% – the first increase since 1992. Residential land prices in regional areas dropped by 0.1%, although the rate of decline has reduced.

The most expensive land in Japan is the site of the Yamano Music Building in Ginza, Tokyo. The land had an assessed value of 55,500,000 Yen/sqm (approx. 48,800 USD/sq.ft) in 2018, up 9.9% from 2017 and the fifth year in a row to record an increase. This land has increased in value by 275% since 2002.

Residential land
2014 2015 2016 2017 2018
Nationwide -0.6% -0.4% -0.2% 0.0% +0.3%
3 Major Cities +0.5% +0.4% +0.5% +0.5% +0.7%
Tokyo +0.7% +0.5% +0.6% +0.7% +1.0%
Osaka -0.1% 0.0% +0.6% 0.0% +0.1%
Nagoya +1.1% +0.8% +0.8% +0.6% +0.8%
Regional areas -1.5% -1.1% -0.7% -0.4% -0.1%
Commercial land
2014 2015 2016 2017 2018
Nationwide -0.5% 0.0% +0.9% +1.4% +1.9%
3 Major Cities +1.6% +0.2% +0.9% +3.3% +3.9%
Tokyo +1.7% +0.9% +1.6% +3.1% +3.7%
Osaka +1.4% -0.2% +0.4% +4.1% +4.7%
Nagoya +1.8% -0.2% +0.1% +2.5% +3.3%
Regional areas -2.1% -1.5% -0.9% -0.1% +0.5%

Akasaka now home to the most expensive residential land in Japan

Akasaka knocked Chiyoda’s Rokubancho district out of top spot for the most expensive residential land in Japan. A survey site at Akasaka 1-14-11 was valued at 4,010,000 Yen/sqm (approx. 3,500 USD/sq.ft) in 2018, up 9.0% from 2017 and up 125% from 2002.

The site is the Homat Royal condominium building and is located directly across from the Hotel Okura Annex and along the street from the US Ambassador’s Residence and the site of the new Hotel Okura which is under construction. Land prices in Akasaka have been pushed up by wealthy buyers seeking luxury apartments in the city center. Akasaka also has the highest share of company presidents, with 1 in 10 of its residents company directors.

A survey site at Akasaka 6-19-23 (under the Prestige Akasaka Hikawacho condominium) also made its way into the top 10 rankings nationwide with a value of 2,410,000 Yen/sqm (approx. 2,100 USD/sq.ft), up 7.1% from last year and up 90% from 2002. The land is along the same street as the US Embassy Housing Compound and Hikawa Shrine. It is also 220 meters from Tokyo Midtown’s Hinokicho Park.

In second spot nationwide was Rokubancho 6-1 in Chiyoda’s Bancho area – a historically wealthy residential district located on the western side of the Imperial Palace. Residential land had a value of 3,850,000 Yen/sqm (approx. 3,400 USD/sq.ft) in 2018, up 2.7% from 2017 and up 38% from 2012.

Homat Royal in Akasaka, Tokyo. Now home to the most expensive residential land in Japan.

Hokkaido

In Hokkaido, land prices across all uses increased by 0.6% – the second year in a row to see an increase. Residential land prices increased for the first time in 27 years with an increase of less than 0.1%. Of the 269 locations to see an increase in residential land prices, 221 (82%) were located in Sapporo City.

The survey site that saw the highest percentage increase in commercial land prices nationwide was in Niseko with a 35.6% increase in 2018. A commercial survey site had a land value of 40,000 Yen/sqm (approx. 35 USD/sq.ft) in 2018. Niseko also topped the rankings for percentage increases in residential land, taking out the top three spots nationwide. In top spot was a residential survey site near the Shiribetsu River that was valued at 28,000 Yen/sqm (approx. 25 USD/sq.ft) in 2018, up 33.3% from last year. The ski resort town is popular with foreign tourists and demand for hotel development is high.

About the Chika-Koji Assessed Land Values

The chika-koji assessed land values are provided for 25,255 survey sites across Japan and based on a survey date of January 1 each year. Data is released in March. Land values are based on land transactions and acquisitions of public utility sites and may differ from actual market values. They should be used to provide a guide to movements in land values, but should not be considered the true market price of real estate.

Source: The Ministry of Land, Infrastructure, Transport and Tourism, March 27, 2018.

Loading