According to the Ministry of Land, Infrastructure, Transport, and Tourism’s (MLIT) LOOK Report for the fourth quarter of 2020, a total of 15 locations recorded an increase in land prices, up from just 1 location in the previous quarter.
In the Tokyo region, 6 of the 43 locations saw an increase in land prices, up from 0 in the third quarter, while 11 saw land prices fall. The Osaka region saw 4 districts with an increase in land prices up from 0 in the third quarter, while 17 saw land prices fall.
As expected, demand for residential development sites has recovered as apartment sales have remained strong throughout the year. On the commercial side, there has been some demand although it is more restrained, with 6 locations seeing land prices rise.
Districts with a heavy concentration of hotels and retail have continued to suffer from the prolonged drop in tourism spending. Some districts have taken a turn for the worse as retail and office vacancies start to rise.
Commercial and retail districts in Tokyo’s Yaesu, Nihonbashi, and east of Shinagawa Station saw land prices switch to a downwards trend. Kabukicho and Ueno, entertainment and tourist districts, saw land prices fall between 3 ~ 6% for the third straight quarter. Osaka’s Shinsaibashi and Namba districts also saw similar drops.
Nationwide, 38 locations saw land prices decline, down from 45 locations in the third quarter.
This is the third report looking at changes in land prices since the onset of the coronavirus pandemic.