Tokyo September 22 2024: As of July 1, the average land price in Japan increased by 1.4 percent compared to the previous year, marking the third consecutive year of growth and the largest rise since 1992, according to government data.
This surge is largely driven by foreign investment fueled by the weaker yen.
Commercial land prices jumped 2.4 percent, while residential land prices climbed 0.9 percent. Both categories saw their sharpest gains since 1992, a year marked by the collapse of Japan’s asset bubble. This marks the third consecutive year of increases in both sectors, as reported by the Ministry of Land, Infrastructure, Transport and Tourism.
According to the ministry’s statement, cited by Kyodo News, “Unlike the speculative buying and selling during the bubble era, the current price increases reflect genuine demand.”
In Japan’s regional areas, residential land prices edged up 0.1 percent, commercial land prices rose 0.9 percent, and overall land prices increased by 0.4 percent.
Residential land prices rose in 17 of Japan’s 47 prefectures, while commercial land prices, which are strongly impacted by inbound tourism, increased in 28 prefectures
