On March 26th, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) revealed the latest statistics on nationwide land values, showcasing a resurgence in the return to workplace trend, a rebound in international tourism, and a shift in interest from Niseko to more budget-friendly ski resort destinations.
The data indicates a 2.3% rise in the average land value across various purposes, marking the highest point since 1991. This shows a notable acceleration from the 1.6% increase in 2023 and the 0.6% rise in 2022. Particularly, residential land values experienced a 2.0% increase, while commercial land values surged by 3.1%.
In the broader Tokyo area, including Tokyo, Saitama, Chiba, Kanagawa, and Ibaraki, land values surged by an average of 4.0%, continuing a three-year streak of annual growth and surpassing the previous year’s growth by 1.6 percentage points.
Central Tokyo and major train station areas witnessed some of the most significant value hikes, attributed to the preference for locations offering easy access to workplaces or convenient commutes. Residential land values in Tokyo’s 23 wards increased by 5.4%.
Akasaka claims the spot for Japan’s priciest residential land, with a plot valued at 5.35 million Yen per square meter, indicating a 4.5% increase from the previous year. This upscale neighborhood benefits from nearby high-rise developments, including the recently launched Azabudai Hills project, which further boosts land values.
Commercial land values in Tokyo’s 23 wards rose by 7.0%, building on the 3.6% increase seen in 2023. The prime commercial land under the Yamano Music Building in Ginza is now valued at 55.7 million Yen per square meter, up 3.5% from last year, fueled by increased spending by affluent domestic consumers and the resurgence of international tourism.
Asakusa has notably thrived from the swift recovery of the tourism sector, with the top five increases in commercial land values in Tokyo all located there, witnessing annual hikes of 15 to 18%. The first two months of 2024 saw 5.476 million visitor arrivals, surpassing the figures from the same period in 2019 by 3.4%.