As of July 1, the average price of land in Japan increased by 1.4 percent compared to the previous year, marking the third consecutive annual rise and the largest gain since 1992. This trend is attributed to heightened foreign investment spurred by the weak yen, according to government data.
Commercial land experienced a notable 2.4 percent increase, while residential land saw a 0.9 percent rise. Both categories have now advanced for three straight years, reflecting the sharpest growth since the early ’90s, which was a time when land values plummeted following the collapse of Japan’s asset bubble, according to the Ministry of Land, Infrastructure, Transport and Tourism.
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The ministry’s report, as cited by Kyodo News, indicated that, in contrast to the short-term buying and selling characteristic of the bubble era, prices are now consistently rising, suggesting that there is genuine demand.
In regional areas, residential land prices edged up by 0.1 percent, while commercial land prices increased by 0.9 percent, leading to an overall growth of 0.4 percent in land prices.
Residential land prices climbed in 17 out of Japan’s 47 prefectures, and commercial land prices, significantly impacted by the rise in inbound tourism, rose in 28 prefectures.
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