Japan reports growth in construction output and land prices

Recent data from Japan’s Ministry of Land, Infrastructure, Transport and Tourism indicates growth in both the construction sector and real estate values. In July 2026, total construction work output reached 5.1662 trillion yen, a 5.5% increase compared to the previous year. This growth was driven by both the private sector, which rose 7.5%, and the public sector, which saw a 2.2% increase.

Simultaneously, Japan’s standard land prices have shown a continuous upward trend. Residential land prices have risen for five consecutive years, with a national average increase of 1.0%. Commercial land prices rose by 2.9%. This trend is particularly notable in major metropolitan areas like Tokyo and Osaka, where price increases are spreading from city centers to suburban regions. Areas with strong amenities for families, such as Nagareyama in Chiba Prefecture, have seen significant spikes in land value.