Japan’s Standard Land Prices were announced yesterday by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The national average dropped by 0.4% from last year. This is the second year in a row to see a decline, but it is a slight improvement from last year’s 0.6% drop. The nationwide average has been in the negative for 27 of the past 30 years.
Yesterday the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the Standard Land Prices for 2018. The average standard land price across Japan increased by 0.1% – the first increase since 1991. This follows a 0.3% drop recorded in 2017.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT), announced the Standard Land Prices on September 19th. In the Tokyo metropolitan area, land prices across all uses increased by 3.0% from last year, recording the fifth consecutive increase in land prices. Commercial land prices in Tokyo’s 23 wards increased by an average of 5.9%, after recording a 4.9% increase in 2015. Shibuya Ward was in top place with 8.6% growth (6.6% in 2016).
The survey site under the Ginza Owaricho Tower in Ginza 6 Chome saw a 21.8% increase in land prices over the past 12 months.
Nationwide, standard land prices were down 0.6% for residential land, but up 0.5% for commercial land. This is the first time in 10 years to see an increase in commercial land prices.
Kyoto’s tourism boom drives commercial land price growth
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced this year’s Standard Land Prices on September 20.
Nationwide, land prices declined for the 25th year in a row with a 0.6% decrease, although the rate of decline is slowing. Meanwhile, commercial land prices stopped their downwards trend for the first time in 9 years.
Land prices in Japan’s urban centres of Tokyo, Osaka and Nagoya continued to benefit from booming foreign tourist numbers, redevelopment and infrastructure projects, shrinking office vacancy rates, and monetary easing.
Commercial land prices in these three cities increased by 2.9%, representing a fastening pace after 2.3% growth in 2015 and 1.7% growth in 2014. In the Tokyo metropolitan area, commercial land prices increased by 4.1% in 2016, after a 3.3% increase in 2015. In Osaka city, they were up 4.7% this year.
Yesterday the MLIT released the standard land prices (kijun-chika) for Japan’s major cities and regional areas. Nationwide, land prices declined for the 24th year in a row, although the 0.9% decline in 2015 is down from the 1.2% drop seen in 2014.
Buoyed by growing foreign tourist numbers, redevelopment projects, an economic recovery and monetary easing, the three major cities of Tokyo, Osaka and Nagoya, saw commercial land prices rise by 2.3% (up from a 1.7% increase in 2014). Residential land prices in these cities grew by an average of 0.4% (down slightly from the 0.5% increase in 2014).
69.9% of the surveyed commercial locations in the three cities saw an increase in prices (up from 68.0% of locations in 2014), while 44.7% of residential areas saw an increase (compared to a 46.9% share in 2014).
The redevelopment around Nagoya Station in anticipation of the new maglev train, scheduled to start services between Tokyo and Nagoya in 2027, has led to a large increase in land prices. Some locations have increased by between 25 ~ 45%.