On July 1, the National Tax Agency (NTA) released the rosenka land tax values for 2021. Not surprisingly, Osaka’s heavily tourist-oriented Shinsaibashisuji Street saw the biggest decline nationwide, with a 26.4% drop in 2021.
The areas to see the biggest falls have all been stung by the ongoing ban on inbound tourism and a somewhat subdued domestic tourist market. Seven of the ten areas with the largest declines were all located around the Kinki region, which includes Osaka and Nara.
The Osaka Minami district recorded 44.6% year-on-year growth in 2020. This year’s decline is the first for the district since 2012. Anticipating a severe shift in valuations, the NTA started looking into special relief measures from June 2020, announcing an emergency revision downwards of valuations in three districts in Osaka in February. This was the first time the NTA had made a revision outside of a major disaster since 1955.
The Sanmachi historical house preservation area in Gifu’s Takayama City was in second spot, with rosenka land values dropping 12.7%. Tokyo’s Asakusa district saw land values drop 11.9%, while Sotokanda 4 Chome in Chiyoda ward saw a 10.5% drop. Kyoto did not make the top 10 land decreases.
The land alongside the Kyukyodo Building in Ginza was the most expensive land in Japan for the 36th year running. It had a rosenka value of 42,720,000 Yen per square meter (approx. US$35,700/sq.ft), down 7% from last year and the first decline in 9 years. The average across Tokyo dropped by 1.1%, the first decline in 8 years.
The national average dropped 0.5%. This is the first decline in in six years. 39 of Japan’s 47 prefectures reported an average drop in rosenka land values, while 7 reported increases. Only 8 cities saw an increase. The pandemic has had less of an effect on residential land values, with some areas seeing increases.
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 Asahi Shimbun, July 1, 2021.
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