Increase in Land Prices Records Four Consecutive Years in Japan
Japan has witnessed a fourth consecutive year of land price growth, according to data released by the land ministry on September 16, 2021, and reported by Jiji Press. This growth is a significant development, marking the end of a 30-year decline in average prices for residential districts in regional areas, excluding certain metropolitan areas and major cities.
The nationwide average for residential districts increased by 1.0%, while the average for commercial districts saw a more substantial rise of 2.8%. This growth is attributed to a moderate economic recovery and a surge in demand for condominiums, particularly in central Tokyo. Foreign investments have played a notable role in this increase, contributing to the rise in commercial land prices, including condominiums.
The land price growth trend is ongoing, with no signs of slowing down as of September 16, 2021. The growth is not confined to specific areas but is a nationwide phenomenon. Among commercial districts, areas visited by foreign tourists and hosting new semiconductor plants showed significant land price increases. However, the Japanese cities where commercial land prices increased most noticeably between January and July 2021 were not specified in the provided search results.
The presence of foreign tourists and new semiconductor plants has been linked to the increase in commercial land prices. In central Tokyo, land prices in commercial districts, including condominiums, were raised by investments in these areas.
The increase in residential land prices is also linked to low mortgage rates and growing housing demand in resort areas. This trend excludes the Tokyo Osaka, Nagoya metropolitan areas, as well as the four major regional cities of Sapporo, Sendai, Hiroshima, and Fukuoka, which were excluded from the regional area price calculation.
This marks the fourth consecutive year of land price growth in Japan, a development that is likely to continue as the economy recovers and demand for real estate remains high.
