OSAKA - The benchmark land prices, a key reference point for real estate transactions, were released on September 16th. While many tourist areas across the country saw increases, Osaka is experiencing a particularly notable trend.
The benchmark land price is surveyed and published by each prefecture. The highest growth rate in residential land nationwide was recorded in Kitanomine-cho, Furano City, Hokkaido. Furano is a popular ski resort, but it also attracts visitors year-round with its natural surroundings.
Tourists at the site praised it enthusiastically: "Furano is the best" and "Furano is so beautiful."
The rebound of inbound tourism after the pandemic, combined with the weak yen and the expansion of vacation rentals, has fueled rising demand. This trend has lifted land prices in tourist areas nationwide. The effect has also been evident in Osaka.
In Osaka, the most expensive commercial location this year was the South Building of Grand Front Osaka in Kita Ward, priced at 24.5 million yen per square meter. Just west of the site lies the Umekita Phase 2 district, where the GranGreen Osaka complex opened in September last year, further adding momentum to the Umeda area and driving up land values.
For residential areas, the sharpest increase was recorded in Naniwa Ward. The district benefits from JR Namba Station and convenient transport, but another striking phenomenon has taken hold.
Reporting from the area, journalist Akari Furuse noted: "At the foot of the Tsutenkaku Tower, a popular tourist destination, you can see special zone minpaku accommodations lined up everywhere."
Experts explain that the surge in foreign visitors has driven the spread of these deregulated short-term rentals, influencing land prices.
A tourist from Taiwan said: "Minpaku units have washing machines and small kitchens, and they are spacious. Ordinary hotels are very cramped, and staying at a better one is much more expensive."
Yet the rise of special zone minpaku has consequences for local residents. Kensuke Ienaga, a manager at rental agency Gallant, said: "When entire buildings are converted into minpaku, the number of apartments available for rent decreases. Right now, most are fully occupied. By next year, new workers and students may have a hard time finding housing."
The recovery of inbound demand and the expansion of special zone minpaku have become major drivers behind Osaka’s benchmark land price growth.
Nationwide, tourist areas also dominated the list of top growth rates. Hokkaido accounted for all of the top three, with Furano ranking first in residential land and Chitose leading in commercial land. Particularly notable is Makari Village, neighboring Niseko, which ranked fourth and sixth in residential land growth. This indicates how land prices are rising not only in major tourist hubs but also in surrounding areas.
In Osaka, residential and commercial land in districts adjacent to Chuo and Kita wards recorded strong gains. Naniwa Ward in particular showed marked increases in both categories. Known for its relatively cheap rents, the ward is now seeing a shortage of available units as more apartments are converted into minpaku. The once affordable district is tightening, raising concerns that new renters may face serious challenges ahead.
Source: FNN
