Jul 02, 2019 (Japan Times) - Land prices have risen for the fourth straight year, reflecting strong demand in major cities and tourist spots driven by increasing numbers of visitors from overseas and a recovering economy, according to National Tax Agency data released Monday.
Brisk demand for hotels and offices pushed prices up by 1.3 percent on average as of Jan. 1, against a year earlier, but the gap between urban and rural areas continued to widen.
Land prices, mainly in urban areas, reflected a strong appetite for real estate investment and stable housing demand supported by improved employment. The prices are used to calculate inheritance and gift taxes.
Prices climbed in 19 of the 47 prefectures, including Tokyo, which will host the Summer Olympics next year, compared with 18 in the 2017 calender year, the data showed.
However, prices dropped in 27 prefectures and remained flat in Hyogo.
The survey covered about 329,000 sites for calculation of inheritance and gift taxes for 2019.
By prefecture, Okinawa saw the steepest rise of 8.3 percent backed by robust demand for tourism centered on Naha, followed by Tokyo at 4.9 percent and Miyagi, where redevelopment projects have been implemented around Sendai Station, at 4.4 percent.
Land prices in Ishikawa and Oita prefectures rose for the first time in 27 years but stayed flat in 13 prefectural capitals. Tottori was the only capital to see a decline, of 4.5 percent.
The plot in front of the Kyukyodo stationery store in Tokyo’s Ginza shopping district was estimated to be worth a record ¥45.6 million per square meter, making it the most expensive piece of land in the country for the 34th straight year.
