On July 1, the National Tax Agency announced the rosenka land values for 2020. Land values nationwide saw a 1.6% year-on-year increase, an improvement from the 1.3% increase seen in 2019 and the fifth year in a row to see growth.
However, these land valuations are carried out on January 1 and do not take into account any potential economic effects of the pandemic that took hold shortly after. Up until the beginning of this year Japan had been experiencing explosive growth in foreign tourists with 31.9 million arrivals in 2019. With recent travel bans effectively resulting in zero foreign tourists, retail and tourist-reliant areas are likely to see a decline in land prices in the short-term.
Okinawa Prefecture saw an overall increase of 10.5%, putting it in top spot for the 3rd year in a row. One spot alongside Kokusai-dori Street in Naha City saw land values jump by 40.8%. Tokyo saw a 5.0% increase, while Fukuoka saw a 4.8% increase.
The most expensive valued land in Japan for the 35th consecutive year is located alongside the Kyukyodo Building in Ginza, Tokyo. It had a rosenka land value of 45,920,000 Yen per square meter (approx. US$39,650/sq.ft) in 2020, up 0.7% from last year. Kaminarimon-dori Street in Asakusa saw a 33.9% increase to 4,030,000 Yen/sqm.
In Osaka, the land alongside Mido-suji Street and in front of the Hankyu Department Store increased by 35% to 21,600,000 Yen per square meter. In Niseko, one survey site saw land values increase by 50% to 720,000 Yen per square meter.
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: The National Tax Agency, July 1, 2020.