Residential land prices rise for first time in 31 years: survey
Average overall land prices in Japan rebounded from a three-year slump, while residential properties gained in value for the first time in 31 years, a land ministry report showed Sept. 20.
The overall average increased year on year by 0.3 percent as of July 1, while residential land prices edged up 0.1 percent, according to the report.
The rises reflect growing demand for homes and stores as economic activities pick up steam following the easing of restrictions related to the novel coronavirus pandemic.
Residential land prices had been steadily sliding since 1992, after the bursting of the asset-inflated economic bubble.
But the latest report found that overall residential land prices were buoyed by the second straight annual increases in the Tokyo and Nagoya metropolitan areas, as well as the first rise in the Osaka area in three years.
One factor behind the increase in residential land prices in the three cities is that a growing number of residents are relocating from the urban centers to the suburbs because they can now telework.
Sales of apartments in large cities are also robust thanks to preferential tax breaks offered to buyers of residential homes.
The average price of commercial land in Japan went up 0.5 percent, compared with last year’s decline of 0.5 percent from 2020. It marked the first increase in three years.
Commercial land prices in Osaka also rose after falling in 2021.
Analysts say businesses are investing more to open shops because personal consumption is now picking up.
Demand for office space is also on the recovery track. Read More...
