Nationwide land prices experienced a 2.3 percent increase, marking the third consecutive year of growth and the highest rise since the 2008 financial crisis. This surge is based on a survey of approximately 26,000 land plots conducted on January 1st.
Sixty-five percent of the surveyed points showed increases compared to the previous year, with land prices exceeding pre-pandemic levels in 60 percent of cases. The three major metropolitan areas surrounding Tokyo, Osaka, and Nagoya witnessed an average increase of 2.8 percent.
In Tokyo, soaring apartment prices have driven prospective homeowners to purchase more affordable properties in neighboring prefectures. Cities like Nagareyama and Ichikawa in Chiba Prefecture, which offer convenient access to Tokyo via public transportation, experienced residential land price increases exceeding 10 percent.
Outside the major metropolitan areas, the four cities of Sapporo, Sendai, Hiroshima, and Fukuoka recorded an average increase of 7 percent due to ongoing redevelopment projects. The construction of new semiconductor plants also contributed to residential land price increases in Chitose, Hokkaido, and Kikuyo, Kumamoto Prefecture.
In Tokyo's 23 wards, all survey points registered increases of 5 percent or more, driven by strong demand for offices and stores. Yamano Music Co.'s main store in Ginza remained the nation's highest-priced plot for the 18th consecutive year, valued at 55.7 million yen per square meter.
Despite the overall increase, land prices continued to decline in rural areas affected by depopulation. However, experts anticipate gradual land price increases due to demand for new homes and the expectation of rising wages providing support to homebuyers.