Japan average land price rises over 2% for 1st time

by Jul 2, 2024Featured Article, News

The average land price in Japan rose 2.3 percent in 2024 from a year earlier, government data showed Monday, surpassing 2 percent for the first time and marking the highest annual rate of increase since the current calculation method was introduced in 2010.

The third consecutive year of increase comes as the economy continues to recover from the coronavirus pandemic, with booming inbound tourism also supporting solid demand for condominiums in urban areas.

The National Tax Agency’s annual survey of prices per 1 square meter of land facing major roads is used to calculate inheritance and gift taxes. It is based on data compiled by the Ministry of Land, Infrastructure, Transport and Tourism and reflects land transactions.

Out of the 47 prefectures, 29 observed higher average land prices as of Jan 1, four more than last year. Fukuoka topped the list of prefectures this year with a 5.8 percent increase, followed by Okinawa at 5.6 percent, Tokyo at 5.3 percent and Hokkaido at 5.2 percent.

Meanwhile, average prices dropped in 16 prefectures, with Wakayama seeing a decline of 1.0 percent, Ehime 0.8 percent, and Toyama and Kagoshima each 0.7 percent.

The survey also showed that among prefectural capitals, 37 saw land prices in their prime locations increase, with those in Saitama and Chiba topping 10 percent.

As the impact of a Jan. 1 earthquake that hit Ishikawa Prefecture hard in central Japan was not reflected in the latest survey, the agency will announce a separate adjustment rate for approximately 21,000 sq kilometers of land in Ishikawa and nearby Niigata and Toyama prefectures to help reduce the tax burden of affected areas.

The price of land on Kaminarimon Street in Tokyo’s downtown Asakusa district, a popular tourist area, rose 16.7 percent from the previous year on the back of an increase in foreign visitors.

The most expensive area in Japan for the 39th year was in front of Kyukyodo stationery store in Tokyo’s Ginza shopping district. It was appraised at 44.24 million yen per sq meter, up 3.6 percent from the year before.

As in previous years, no values were assigned for land in areas in Fukushima Prefecture where an evacuation order remains in place following the 2011 nuclear power plant disaster.