Average land price in Japan rises after 27 years
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.
Prices in the country’s three largest metropolitan regions of Tokyo, Nagoya and Osaka rose 4.2 percent, while those in four key regional cities — Sapporo, Sendai, Hiroshima and Fukuoka — jumped an average of 9.2 percent.