Japan’s rosenka land values increase after 2 years

This year’s rosenka land tax values were released by the National Tax Agency on July 1, and it’s been a mixed bag with some areas seeing gains and others losses.

With the country still not completely open to foreign tourism, some areas heavily dependent on inbound tourists continued to see land values erode. Osaka’s Shinsaibashi-suji shopping street saw land values drop by 10.6% in 2022 – the worst percentage decline in the country. It’s still a slight improvement from the 26.4% drop seen in 2021.

Meanwhile, the average rosenka land value nationwide increased by 0.5%. On a prefectural basis, 27 of the 47 prefectures saw land values fall. Tokyo saw a 1.1% increase and Hokkaido saw a 4.0% increase. 

The most expensive land in Japan for the 37th year running was the land alongside the Kyukyodo Building in Ginza. The land value dropped by 1.1% from last year to 42.24 million Yen per square meter. The Marunouchi office district in Chiyoda recorded a 1.3% decline.

A tourist spot in Asakusa that saw land values drop 11.9% in 2021 saw a 1.1% improvement this year as domestic travelers return. 

Resort areas finally get their day in the sun

With remote work now a more accepted option in some professions, resort areas are seeing land values rise as some people are choosing to spend some or all of their time in a more relaxing environment. 

Hakuba’s Wadano district in Nagano Prefecture saw land values rise by 20%. A real estate appraiser noted that it is easier to see larger fluctuations in areas where land values are cheap to begin with, but there have been noticeable property purchases by wealthy individuals and corporations as of late.

The beachside resort city of Atami in Shizuoka Prefecture is as short as 29 minutes by Shinkansen from downtown Tokyo. Land values at one location increased by 5.9% in 2022. The local tourism association said the city has experienced a quicker recovery as it has historically been popular with domestic tourists and less reliant on overseas visitors. Several tourist spots in Kyoto also saw a turnaround this year with land values increasing, again due to the recovery in the domestic tourism market. 

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. 

Sources:
The Yomiuri Shimbun, July 1, 2022.
Jiji Press, July 1, 2022.

 940 total views,  2 views today