TOKYO - Japan's benchmark land prices rose for a fifth consecutive year on average, with commercial land posting stronger gains as demand for hotels and other properties remained firm in major cities, according to figures released by the Ministry of Land, Infrastructure, Transport and Tourism.
The nationwide average price across all land-use categories rose 1.5%, while residential land increased 1.0% and commercial land climbed 2.9%, with the pace of growth in commercial areas accelerating.
The Meidi-Ya Ginza Building in Tokyo's Ginza district remained the country's most expensive commercial site for the 21st consecutive year, valued at 52.5 million yen per square meter.
In the Tokyo metropolitan area, The House Asakusa in Taito Ward recorded the largest increase, with its benchmark land price rising 26.9%.
The pace of land price increases expanded in the Tokyo and Osaka metropolitan areas, while the rate of increase slowed in the Nagoya metropolitan area, as well as in Sapporo and Fukuoka.
The latest land price survey also showed particularly strong gains in Osaka Prefecture, where seven of the 10 commercial sites with the highest rates of increase were located in Osaka City's Nishi Ward.
Residential land prices in Osaka Prefecture rose 3.0%, while commercial land prices climbed 8.8%. It was the first time in 36 years that residential land prices had risen by 3% or more and the first time in seven years that commercial land had gained at least 8%.
The prefecture's most expensive residential site was in Shinpo-incho in Osaka City's Tennoji Ward, an area known for its concentration of educational institutions. The site, which has ranked first for 27 consecutive years, was valued at 874,000 yen per square meter.
It also recorded Osaka Prefecture's highest residential land price increase at 11.2%.
The rise is believed to have been driven in part by so-called "education migration," in which wealthy families from Japan and overseas move to the area to gain access to sought-after educational opportunities.
Naniwa Ward, which had recorded Osaka City's highest rate of land price growth last year as demand for short-term rental accommodation increased, disappeared from the top 10 this year following the suspension of new special-zone minpaku applications.
In the commercial category, the Deka Ebisubashi Building in Osaka City's Chuo Ward returned to the top position for the first time in seven years, replacing the South Building of Grand Front Osaka in Kita Ward.
The Ebisubashi property was valued at 25.8 million yen per square meter, up 7.1%.
The Umekita area around Osaka Station, which has recorded sharp land price increases in recent years, saw growth slow across many locations. The area contains numerous large development sites, making projects particularly exposed to rising construction costs.
By contrast, Nishi Ward accounted for seven of the 10 commercial locations with the largest increases in Osaka Prefecture.
The ward offers convenient access to both Umeda and Namba, and is expected to benefit further from the opening of a new station on the Naniwasuji Line.
An appraiser involved in the survey said future trends will require close attention to the possibility of a further decline in demand for short-term rentals as regulations are tightened, as well as the impact of rising interest rates on property values.
Source: テレ東BIZ
