The Ministry of Land, Infrastructure, Transport and Tourism released the “Land Price LOOK Report” (Q4 2019), which summarizes trends in the land prices of highly-used land in major cities, on the 14th. The survey was conducted in 43 districts in Tokyo, 25 districts in Osaka, 9 districts in Nagoya, and 23 districts for a total of 100 districts (32 residential districts and 68 commercial districts).
During the period under review (October 1, 2007-January 1, 2008), land prices increased in 97 areas (previously, it had been 97 areas, too), leveled off in 3 areas (it had been level in 3 areas previously, as well), and decreased in 0 areas (0 areas, same as before). The percentage of districts where it increased exceeded 90% for the eighth consecutive quarter.
With the economic recovery, improving employment and income environment, and favorable financing environment, the office market has been firm, the redevelopment business has progressed, and stores and hotels have increased due to the increase in foreign visitors to Japan and other visitors. The reason is that demand for condominiums has been firm in addition to construction demand.
Of the rising districts, four districts (Nishi Umeda), “Chayamachi” and “Shin-Osaka” in Osaka City and “Kenchomae” in Naha City in Okinawa (4 districts) recorded more than a 6% increase. The increase of 3 to 6% was in 19 districts (24 districts) and the increase of 0 to 3% was in 74 districts (69 districts). In 1 commercial district in the Nagoya area, 3 commercial districts in the Osaka area, and 1 commercial district in the provincial area, the percentage that increased shrank from 3-6% to 0-3%. In addition, two commercial districts in the Tokyo metropolitan area and one residential district in the metropolitan area continued to be flat, and there were no declines for the 22nd consecutive quarter since the third quarter of 2014.
By area, rises were in 41 districts (41 districts) in the Tokyo area (43 districts) and remained flat in 2 districts (2 districts). Land prices in the Osaka area (25 districts) rose in all districts for eight consecutive quarters from the first quarter of 2018. In the Nagoya area (9 districts), all districts rose for 27 consecutive quarters from the second quarter of 2013. In the provincial areas (23 districts), the rises were in 22 districts (22 districts) and 1 district (1 district) levelled off.
By use, residential districts’ land prices rose in 31 districts (31 districts) out of 32, and remained flat in 1 district (1 district). In the commercial district (68 districts), land prices rose in 66 districts (66 districts) and remained flat in 2 districts (2 districts).