Areas where land prices have risen the most
Land prices are rising in Japan. According to official data, the average land value has increased by 2.3% in 2024. This is the first time since 2010 that analysts have recorded a growth rate of over 2% in the country. This was the year of introducing a new price calculation system for the property market.
It is worth noting that Japan’s land cost has been rising regularly for three years. This is due to the recovery of the economy after the pandemic. Another stimulus for the sector is the active development of the tourism business. A large number of foreign travellers visit the country, which contributes to the demand for condominiums.
Study details
The National Tax Agency carries out an annual analysis of land prices. Specialists estimate the cost per square metre of land adjacent to main roads. This indicator forms a basis for registering inheritances and gifts.
Data from the latest survey:
1. Land prices rose in 29 of 47 prefectures.
2. The marked figure is four prefectures higher than last year’s results.
3. Fukuoka topped the list with a 5.8% increase in land prices.
4. Okinawa came second with a price increase of 5.6%.
5. The price of land in Tokyo rose by 5.3%;
6. Land prices in Hokkaido rose by 5.2%.
In sixteen prefectures, land prices fell, but by no more than 1%. For example, land prices fell by 1% in Wakayama and 0.8% in Ehime.
Prices rose in 37 central prefectural cities. Moreover, the largest increases were in popular areas of the cities. Analysts noted rapid price increases in Saitama and Chiba – by 10%.
There was an earthquake in Ishikawa Prefecture in January 2024. As a result, the experts did not include the region in the study. A separate adjustment system was introduced for this area, which covers around 21,000 square kilometres. This approach makes it possible to reduce the tax burden for the designated area.
The locations with highest land prices
In 2024, the price of land in Tokyo skyrocketed. In the popular tourist district of Asakusa, the cost of land rose by 16.7%. This is due to the large number of travellers in the Japanese capital.
Japan’s most expensive plot of land is in front of the Kyukyodo stationery shop in the capital’s Ginza shopping area. One square metre costs around 44.2 million yen, and the price has risen by 3.6% over the year.
Market problems
Despite the rise in land prices, Japan’s market has a serious problem. This is the problem of abandoned houses, which affect the value of surrounding properties. Experts have estimated the losses from such houses at US$24.7 billion over five years. An extended period when abandoned houses remain unsold leads to their gradual destruction. This further reduces their attractiveness to potential buyers and increases repair and restoration costs.