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
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?