First LOOK at land prices since pandemic

On June 19, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) published their latest quarterly LOOK Report and land prices in Japan’s major cities. With a survey point of April 1, this is the first look at land prices since COVID. Overall, 73% of the surveyed locations nationwide saw an increase in land prices, down from a 97% share in the previous quarter.

Within the greater Tokyo region, 26 of the 43 locations saw an increase in land prices (down from 41 locations in the previous quarter), while 16 locations saw no change (up from 2 locations). In the Osaka region, all 25 locations saw an increase in land prices.

In regional areas, 7 of the 23 locations saw no change in land prices (up from 1 location in the previous survey), while 3 locations saw a decrease in prices.

Residential districts in Tokyo where land values continue to climb this quarter include Minami Aoyama, Toyosu, and Ariake. Commercial locations include Marunouchi, Yurakucho/Hibiya, Yaesu, Nihonbashi, Roppongi, Akasaka, Omotesando, and Shibuya.

In Ginza, land prices remained flat. The retail district suffered from temporary store closures and a lack of shoppers during the voluntary shut down. Restaurant tenants have been seeking rent reductions from landlords. Although transactions have slowed, there has been no sign of distressed sales, possibly due to the good financing climate. 

After several quarters of no change, commercial land prices in Yokohama’s Motomachi district declined this quarter, making it one of just four locations nationwide to see a decline. Other locations included Gifu Station area, Takamatsu City, and residential land near Ohori Park in Fukuoka City.

Source: MLIT, June 19, 2020.

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