Land prices are on the rise again, according to the latest quarterly LOOK Report published by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). In the fourth quarter of 2021, a total of 55 of the 100 surveyed locations saw land prices increase. This is up from just 15 locations in the fourth quarter of 2020.
17 locations saw a decrease in land prices, down from 38 locations in the fourth quarter of 2020.
Of the 32 residential locations, 30 saw land prices increase and the remaining 2 saw no change. For commercial locations, 24 saw land prices increase, 26 saw no change, and 17 saw a decrease.
Minami Aoyama in Tokyo’s fashionable Omotesando district, saw four straight quarters of increases in residential land prices in 2021, as did the wealthy residential Bancho area to the west of the Imperial Palace. These locations are both highly sought-after by buyers looking for high-end housing, while available development sites remain scarce.
The MLIT attributes the rising prices to strong apartment sales in residential districts. In commercial districts, retailers have been seeing a recovery in revenues, while institutional investors are actively acquiring commercial real estate.
Source: The MLIT, February 22, 2022.
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