+
Japan's land prices up by 2.3% in 2023
Real Estate

Japan's land prices up by 2.3% in 2023

The government survey revealed that Japan's land prices experienced the swiftest increase in 33 years in 2023, returning to pre-coronavirus levels. This development served as a positive indicator for the nation's economic prospects as it navigates its way out of a prolonged period of stagnation.

According to the survey released, the surge in land prices was facilitated by the economic recovery and the resurgence of foreign visitors post-pandemic.

It was reported that average nationwide land prices had risen by 2.3% in the year leading up to January 1, marking the most substantial growth since the 11.3% increase observed in 1991, coinciding with the onset of a decline in land prices following the burst of the late 1980s asset bubble.

An official at the land ministry remarked, "The trend of rising land prices has become more pronounced," indicating a shift away from deflationary pressures.

This uptick in land prices aligned with other positive economic indicators, including soaring stocks, robust wage increments, and sustained annual consumer inflation above 2% for an extended period. These factors prompted the Bank of Japan to terminate negative interest rates the previous week, marking a significant departure from decades of monetary stimulus.

Residential land prices surged by 2.0% for the year, matching the fastest pace recorded since 1991, following a 1.4% increase in the preceding year. The demand for housing in urban regions and well-connected areas remained strong, while foreign interest in vacation homes and condominiums in resort destinations like northern Furano city in Hokkaido contributed to the price escalation.

Commercial land prices also saw a notable uptick, increasing by 3.1% for the third consecutive year, mirroring the growth rate observed in 2020. Factors such as post-pandemic recovery, redevelopment initiatives, and vibrant inbound tourism bolstered demand.

The establishment of semiconductor plants in Kikuyo town, Kumamoto prefecture, and Chitose city in Hokkaido spurred demand for office spaces and residences, consequently driving up land prices in the vicinity.

The government survey revealed that Japan's land prices experienced the swiftest increase in 33 years in 2023, returning to pre-coronavirus levels. This development served as a positive indicator for the nation's economic prospects as it navigates its way out of a prolonged period of stagnation. According to the survey released, the surge in land prices was facilitated by the economic recovery and the resurgence of foreign visitors post-pandemic. It was reported that average nationwide land prices had risen by 2.3% in the year leading up to January 1, marking the most substantial growth since the 11.3% increase observed in 1991, coinciding with the onset of a decline in land prices following the burst of the late 1980s asset bubble. An official at the land ministry remarked, The trend of rising land prices has become more pronounced, indicating a shift away from deflationary pressures. This uptick in land prices aligned with other positive economic indicators, including soaring stocks, robust wage increments, and sustained annual consumer inflation above 2% for an extended period. These factors prompted the Bank of Japan to terminate negative interest rates the previous week, marking a significant departure from decades of monetary stimulus. Residential land prices surged by 2.0% for the year, matching the fastest pace recorded since 1991, following a 1.4% increase in the preceding year. The demand for housing in urban regions and well-connected areas remained strong, while foreign interest in vacation homes and condominiums in resort destinations like northern Furano city in Hokkaido contributed to the price escalation. Commercial land prices also saw a notable uptick, increasing by 3.1% for the third consecutive year, mirroring the growth rate observed in 2020. Factors such as post-pandemic recovery, redevelopment initiatives, and vibrant inbound tourism bolstered demand. The establishment of semiconductor plants in Kikuyo town, Kumamoto prefecture, and Chitose city in Hokkaido spurred demand for office spaces and residences, consequently driving up land prices in the vicinity.

Next Story
Infrastructure Urban

CJ Logistics’ Global CEO visits India to align growth strategy

Jonathan Song, newly appointed CEO of the Global Business Division at South Korea-based CJ Logistics, concluded a strategic three-day visit to India from July 29 to 31, reinforcing the company’s long-term commitment to the market through its subsidiary, CJ Darcl Logistics Ltd. Mr Song held high-level discussions with the CJ Darcl leadership and key customers to understand India’s evolving logistics needs, identify synergy areas, and enhance business alignment. His visit highlighted the strategic significance of India in CJ Logistics’ global network, especially amid the country’s g..

Next Story
Real Estate

Max Towers secures five star rating in safety audit by British Council

Max Estates, a leading NCR-based real estate developer, has achieved a five star rating in its first attempt at the British Safety Council’s ‘Five Star Occupational Health and Safety’ Audit for Max Towers, its premium commercial office project in Noida. The grading reflects the organisation’s commitment to the continual improvement of its occupational health and safety systems. The comprehensive audit covered documentation, interviews with senior management and employees, stakeholder feedback, and rigorous sampling of on-ground activities. It assessed performance against best prac..

Next Story
Real Estate

India’s Tier 2 & 3 Cities: The Next Growth Frontier for Real Estate

Introduction India’s metropolitan cities have long dominated the real estate landscape, shaping both market trends and public discourse, but the narrative is shifting towards India’s tier 2 and 3 cities. Beyond the metro cities, Tier 2 and Tier 3 cities such as Indore, Ahmedabad, Chandigarh, Jaipur, Coimbatore, Lucknow, Bhubaneswar, Kochi, Surat, Guwahati, and many others are emerging as vibrant real estate hubs. This growth is driven by impetus from rapid urbanisation, logistics corridors like the Delhi Mumbai Industrial Corridor, IT/ITeS investment zones, emergence of global capabil..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?