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Official land costs in Japan elevated 0.6% in 2021, rising for the primary in two years, reflecting the gradual restoration of the economic system from the pandemic and associated border closure. This was as introduced by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) based mostly on its January 1, 2022 survey of 26,000 plots of land nationwide.

The MLIT’s official land value survey (koji chika, 公示地価) is a value index based mostly on land transactions. Within the 2022 survey 44% of the plots surveyed rose in worth, greater than double the proportion (19%) that rose in 2021.

Robust housing demand as a result of rising acceptance of telecommuting has supplied a tailwind to this 12 months’s outcomes. Nevertheless, declining values in main metropolis facilities and regional vacationer areas are stopping general land costs from making a full-scale restoration from the pandemic.


Nationwide residential land costs rose 0.5% year-on-year, reversing the 0.4% drop in 2021. The rising acceptance of telecommuting has enabled staff to think about shifting into larger flats and single-family properties. This has juiced the new and re-sale condominium markets and allowed individuals to maneuver into the suburbs, whereas protecting their city-center jobs.

The Tokyo metropolitan space noticed residential land costs improve of 0.6% year-on-year, for instance, with the residential land within the metropolis of Kashiwa, Chiba rising 0.4%, the primary time in fourteen years that the town has skilled constructive value progress. Kashiwa is a well-liked bed room neighborhood for individuals working in Tokyo. Saitama (Metropolis) and Yokohama additionally noticed larger than common will increase in residential land costs, 1.5% and 0.8%, respectively.


Nationwide industrial land values have been up 0.4% in comparison with 2021. This compares to a drop of 0.8% in 2021. Regional variations have been conspicuous within the survey, with Osaka prefecture falling 0.2%, for the second consecutive 12 months of decreases.

The Osaka area is particularly depending on inbound tourism, which was virtually fully shuttered when Japan closed its borders in an effort to regulate the unfold of the virus. In 2021, the variety of guests to Japan fell to a report low of 245,900. This was a drop of 94.0% in comparison with 2020 and 99.2% in comparison with the pre-pandemic degree in 2019 (Supply: Kyodo).

The federal government has maintained its goal of attracting 60 million guests from overseas in 2030 however within the close to future, industrial land costs will probably proceed to face headwinds in areas which can be extremely depending on demand from international vacationers.

Central enterprise districts have additionally been affected by the declining variety of commuters as a result of pandemic. In Tokyo’s 23 Wards, the three central wards of Chiyoda, Chuo, and Minato fell into detrimental territory for the second consecutive 12 months. Nevertheless, within the different 20 wards industrial land costs have been constructive, led by re-development initiatives round main prepare stations. Business land values in Nakano Ward, for instance, rose 2.3% in comparison with 2021.

Different key highlights

Of the three important segments (residential, industrial, and industrial), industrial land costs had the strongest exhibiting, up 2.0% in comparison with 2021. This was primarily as a result of growth of on-line procuring, attributable to the federal government’s stay-at-home and social distancing suggestions. Ichikawa and Funabashi, positioned within the higher Tokyo metropolitan space and well-suited to logistics amenities, for instance, each had year-on-year- progress charges of about 20.0%.

The strongest progress charges, nevertheless, have been seen in Japan’s regional cities. Land costs within the 4 cities of Sapporo, Sendai, Hiroshima, and Fukuoka, that are facilities of their regional economies, elevated by 5.8% on common, taking in account all land varieties (residential, industrial, and industrial). This compares with a progress price 2.9% in 2021. Inhabitants influx from the encompassing space has continued because of re-development initiatives round main stations. This has created a virtuous cycle wherein rising demand attracts extra funding.

The influx of inbound funding cash additionally supported land costs. As rates of interest are rising in the USA, whereas the Financial institution of Japan has pledged to proceed a straightforward cash coverage, Japan will probably proceed to develop as an funding vacation spot due to the comparatively decrease price of borrowing funds.

Supply: Ministry of Land, 2022 Official Land Survey (in Japanese)

Lead picture: Rice fields in Ohara, Kyoto by way of iStock 204908127

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