The average price of land in Japan edged up 0.1 percent this year, putting an end to 26 straight years of decline since the burst of the bubble economy, the government said Tuesday, as a tourism boom spurs the construction of hotels and shops. The average prices for all types of land, including commercial, residential and industrial, were surveyed by July 1 across the country, according to the Land, Infrastructure, Transport and Tourism Ministry. The first price increase in 27 years was mostly due to gains in urban areas, as mountainous and other rural areas with falling populations saw continued declines. "Regional areas where land prices are rising are those with transportation networks being built and other ongoing development projects to attract foreign tourists," said Takeshi Ide, a senior chief researcher at Tokyo Kantei Co., a real estate research firm. Average commercial land prices rose for the third straight year, up 1.1 percent from a year earlier and faster than the 0.5 percent gain logged the previous year.
The average price of land for commercial use outside Japan's three largest metropolitan areas -- Tokyo, Osaka and Nagoya -- has risen for the first time since 1991, as an influx of foreign tourists has been reviving the country's real estate scene, government data showed Thursday. The price was up 0.3 percent from a year earlier as of July 1. It was also boosted by redevelopment projects in relatively large cities, according to data released by the Land, Infrastructure, Transport and Tourism Ministry. The increase, the first since the collapse of the country's asset-inflated bubble economy in the early 1990s, was driven by four major cities -- Sapporo, Sendai, Hiroshima and Fukuoka -- which saw strong demand for hotels, shops and offices, as well as the progress of urban redevelopment around train stations. The average price of commercial land in the four cities grew 10.3 percent from a year earlier, compared with 5.2 percent in the three largest metropolitan areas and the national average of 1.7 percent, which rose for the third consecutive year, according to the data.
Commercial land prices outside major metropolitan areas rose in 2017 for the first time in 26 years, registering a 0.5 percent year-on-year increase, thanks largely to redevelopment projects and hotel construction, government data showed Tuesday. As of Jan. 1 of this year, regional land prices, which also includes residential land values, rose a marginal 0.04 percent from a year before, according to the annual survey by the Ministry of Land, Infrastructure, Transport and Tourism that covers 26,000 locations nationwide. But 52 percent of regional locations sampled for the survey logged price declines, indicating a widening gap between urban and rural areas, the ministry said. Redevelopment and construction of hotels targeted at growing numbers of foreign visitors have helped boost regional commercial land prices, mostly in the four major regional cities of Sapporo, Sendai, Hiroshima and Fukuoka, which saw an average year-on-year price increase of 7.9 percent. Regional residential land prices fell 0.1 percent, compared to a 0.4 percent drop a year earlier, as improved employment and recovering demand for land in convenient locations -- on the back of low interest rates -- helped slow the pace of decline, the report showed.
Prices of commercial and residential land in Japan rose for the first time in eight years in 2015, with growing numbers of foreign tourists pushing up demand for hotels and shops, the government said Tuesday. Average prices, which also include property for industrial use, were up 0.1 percent in the period, rebounding from a 0.3 percent fall logged the previous year, the Ministry of Land, Infrastructure, Transport and Tourism said in an annual survey of around 25,000 locations nationwide. The rise was led by commercial land, which climbed 0.9 percent after being flat a year earlier. Land transactions were brisk in major cities, but more than two-thirds of locations elsewhere saw prices drop. Japan saw record numbers of foreign visitors in 2015 thanks to a weaker yen and greater efforts to promote tourism.
Average commercial land prices in Japan were almost flat in July, an improvement from eight straight years of decline, thanks partly to robust demand for city hotel and shop construction to meet foreign tourist demand, the government said Tuesday. Prices across the country were up 0.005 percent on July 1 compared with the same day a year earlier, while strong demand for offices boosted the prices in the nation's three largest metropolitan regions to a rise of 2.9 percent, data from the Ministry of Land, Infrastructure, Transport and Tourism showed. But the margin of increase in the Tokyo, Nagoya and Osaka metropolitan regions was smaller than that in Sapporo, Sendai, Hiroshima and Fukuoka, where average commercial land prices rose by a sharp 6.7 percent. The ministry attributes the trend to low interest rates driven by the Bank of Japan's negative interest rate policy, which has boosted investment in real estate. The prices of commercial land in other regional cities fell by 1.5 percent, while residential land prices dropped 1.4 percent.