Overview of latest Land Price Survey (Ministry of Land, Infrastructure, Transport and Tourism)

Explanation of the survey

Based on the Enforcement Order of the National Land Use Planning Act, each prefectural governor surveys and announces the price per square meter of standard land as of July 1 every year.

In conjunction with the prefectures' announcements, the Ministry of Land, Infrastructure, Transport and Tourism compiles and publishes the national data.

The number of standard land points for this survey is 21,436 (of which, surveys at 11 locations have been suspended due to the impact of the Fukushima Daiichi Nuclear Power Plant accident).

The survey conducted by the Ministry of Land, Infrastructure, Transport and Tourism (Land Appraisal Committee) is complementary in terms of survey timing and location with the Land Price Survey, which is conducted as of January 1 each year.

(1) Trends in land market value

■ National Average

The average for all land use categories, residential land, and commercial land has increased for three consecutive years, and the rate of increase has expanded.

■ Three Major Metropolitan Areas

The average for all land use categories has increased for four consecutive years, residential land for three consecutive years, and commercial land for twelve consecutive years, with the rate of increase expanding in each case.

In the Tokyo, Osaka, and Nagoya metropolitan areas, the average for all land use categories, residential land, and commercial land has risen, with an expanding rate of increase.

■ Regional Areas

The average for all land use categories, residential land, and commercial land has increased for two consecutive years. The rate of increase expanded for the average of all land use categories and commercial land, while the residential land maintained the same rate of increase as the previous year.

In the four major regional cities (*), the average for all land use categories, residential land, and commercial land has increased for twelve consecutive years, though the rate of increase has decreased.

In other regions, residential land prices continue to decline, but the rate of decline has reduced. Commercial land prices have increased for two consecutive years, with an expanding rate of increase. The average for all land use categories has turned to an increase for the first time in 32 years since 1992.

(*) "Four major regional cities" refers to Sapporo, Sendai, Hiroshima, and Fukuoka.

(2) Overall Characteristics

While there are differences depending on region and land use, the overall trend of land prices across Japan is strengthening, as the economy is gradually recovering. In the three major metropolitan areas, the rate of increase has expanded, and in regional areas, the rate of increase has also expanded or the upward trend has continued, reinforcing the overall upward momentum.

(3) Characteristics by Land Use

Residential land

• Due to the continued low-interest-rate environment, demand for housing remains strong, and land prices continue to rise. In particular, the upward trend in land prices has intensified in the central areas of major metropolitan regions.
• In popular resort areas, demand for vacation homes, condominiums, and housing for new residents has increased, resulting in significant land price increases in certain locations.
• Some areas have seen an expanded rate of increase in land prices due to improved transportation convenience, such as the opening of new railway lines.

Commercial land

• In major cities, demand for retail spaces and hotels remains strong, and office space profitability is improving due to trends such as decreasing vacancy rates and rising rents. As a result, land prices continue to rise.
• In tourist areas where the number of tourists, including foreign visitors, has recovered, significant land price increases have been observed in certain locations.
• In areas near city centers, competition with demand for condominiums has led to continued strong land price increases in some locations.
• In areas where redevelopment projects are progressing, expectations for improved convenience and vibrancy are driving continued land price increases.

Others

• In areas where large semiconductor manufacturers are setting up factories, there is strong demand not only for housing for employees but also for factory land and commercial spaces for related companies. As a result, residential, commercial, and industrial land prices have seen significant increases.
• Driven by demand for large logistics facilities due to the expansion of the e-commerce market, industrial areas with good access to highways and other infrastructure continue to experience high land price increases.
• In regions that suffered significant damage from disasters, including the Noto Peninsula earthquake in 2024 (Reiwa 6), land prices have dropped sharply.