Japan land prices rise for fifth consecutive year

Japanese land prices rose by an average of 1.5 percent for the year ending July 1, marking the fifth consecutive year of growth. This trend represents the strongest pace of increase since the post-bubble era over three decades ago. While the Bank of Japan monitors these asset prices for signs of overheating, the growth is largely driven by economic recovery and tourism.

Regional data shows significant divergence. In Hokkaido, industrial land prices are rising due to semiconductor demand, specifically around the Rapidus Corp. plant in Chitose. However, residential land prices in some areas have declined due to high construction costs and aging populations. In Saga Prefecture, industrial land saw the second-highest growth rate in Japan, driven by logistics demand in Tosu and Kiyama.

Other regions report mixed results. Okayama is experiencing polarization between urban centers, where condominium construction is boosting commercial land prices, and rural areas facing decline. In Akita, commercial land prices rose for the first time in 34 years, led by Akita City, even as residential land prices continued a long-term decline.