On September 20, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) published the results of the nationwide land price survey (chika-chosa) as of July 1, 2011. Overall, land values fell by 3.4% from the year before with residential land falling by 3.2% and commercial land values falling by 4.0% over the same period. In 2010, residential land values fell by 3.4% and commercial land fell by 4.6% so the rate of decline has lessened slightly.
The drop in land values in the disaster-affected areas of Iwate, Miyagi and Fukushima Prefectures fell by a large degree. Within those three Prefectures, data could not be collected at 86 survey sites.
Prior to the March 11 Tohoku disaster, the market for residential land was bullish with low interest rates and mortgage tax rebates pushing up demand. The annual fall in land values was beginning to grow smaller.
After the disaster, land prices in greater Tokyo and Nagoya showed weak movement with land prices falling by 1.9% in greater Tokyo
In rural areas, the declining population is continuing to pull down residential land values.
The following areas in the Kanto region saw the largest decrease in residential land prices:
– Tone Town, Ibaraki: down 7.9%
– Urayasu City, Chiba: down 7.1%
– Noda City, Chiba: down 6.4%
– Goka Town, Ibaraki: down 5.7%
– Kazo City, Saitama: down 5.1%
In Fukushima Prefecture, residential land prices fell by 5.4%, after a fall of 3.1% the year prior.
Out of all the prefectures, Kochi Prefecture saw the largest fall in residential land values of 7.8%. In 2010, land values had fallen by 6.3%.
Average Residential Land Prices By Area*
|Kyushu and Okinawa||33,600||34,400|
*Prices are in Yen per square meter.
For land in business districts, the high vacancy rates, falling rents and drop in sales revenue following the disaster have led to a fall in commercial land values across Japan.
For central Tokyo, office rents continue to fall and many companies have been forced to take on cost-cutting measures by moving to cheaper buildings. Other companies have chosen to move to safer buildings that have a higher level of disaster-preparedness. In some key areas, vacancy rates have improved, and land values in these areas have fallen by a lesser degree.
Commercial land values in Fukushima Prefecture fell by 7.4%, but Kochi Prefecture saw the largest fall of 9.3%.
About the data
The land price survey (chika-chosa) is based on the land values at over 20,000 locations across Japan and is announced on July 1st each year. This survey is different to the annual national land price survey (chika-koji) published on January 1st.
The Jutaku-Shimpo Sha, September 20, 2011
The Ministry of Land, Infrastructure, Transport and Tourism Site (http://tochi.mlit.go.jp/kakaku/chika-chousa)
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