Japan rural land prices rise for first time in 28 years

Land in all categories, including residential and industrial in the nation’s regional areas, excluding the big cities of Sapporo, Sendai, Hiroshima and Fukuoka, grew 0.1 percent from a year earlier as of Jan. 1, while commercial land prices in those areas rose 0.3 percent — both figures seeing the first increase in 28 years, it said.

Residential land prices in those rural areas, which had been falling since 1996, were unchanged from a year earlier, an annual government survey showed. However, the upward trend could reverse if the current coronavirus outbreak further damages the economy, analysts said.

Prefectural capitals and surrounding regions also saw a rise in residential land prices due to redevelopment projects, improvement in infrastructure and increased child care support.

A number of municipalities without underlying reasons for growth also saw slower declines in land prices as they became affordable after years of depreciation following the collapse of the country’s asset-inflated bubble economy, according to the land ministry.

Overall, the average price of land in all categories nationwide, including the metropolitan areas of Tokyo, Osaka and Nagoya, as well as the four big regional cities, grew 1.4 percent from a year earlier, up for the fifth consecutive year, according to the land ministry survey covering some 26,000 locations.

The national average price for commercial land climbed 3.1 percent, up for the fifth year, while that of residential land went up 0.8 percent for the third consecutive year of increase.

An official of the Ministry of Land, Infrastructure, Transport and Tourism pointed to “a strong upward trend” with land prices triggered by a boom in the office space market, a steady demand for hotels amid the influx of visitors from overseas as well as for easily accessible residential areas.