Japan land prices surge at fastest pace in 14 yrs

Japan’s average land price surged 2.3 per cent in 2024 compared to the previous year, exceeding two per cent growth for the first time. This marks the highest annual increase since the current data collection method began in 2010.

The rise comes as Japan’s economic recovery from the pandemic strengthens, with a boom in tourism fuelling demand for condominiums, especially in major cities.

The National Tax Agency’s annual land price survey, used for calculating inheritance and gift taxes, showed a rise in 29 out of 47 prefectures.

Fukuoka saw the highest increase of 5.8 per cent, followed by Okinawa at 5.6 per cent, Tokyo 5.3 per cent, and Hokkaido 5.2 per cent.

However, 16 prefectures experienced price drops, with Wakayama seeing the most significant decline (1.0 per cent). The recent earthquake in Ishikawa Prefecture will be addressed with a separate adjustment to reduce the tax burden on affected areas.

Land prices in prime locations within prefectural capitals also rose, with Saitama and Chiba exceeding 10 per cent growth. Notably, Asakusa’s Kaminarimon Street, a popular tourist area, saw a 16.7 per cent surge due to increased foreign visitors.

Ginza’s Kyukyodo stationery store remained the most expensive location in Japan for the 39th year, valued at 44.24 million yen ($275,000) per square meter, up 3.6 per cent.

Attribution: The Nikkei Asia