According to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) the majority of survey locations for their quarterly Chika LOOK Report have recorded an increase in land prices.
Land price movements were measured in 150 locations throughout Japan, but primarily in the three major cities of Tokyo, Nagoya and Osaka. 80 of those locations, or 53% of the total, recorded an increase in land prices, while 51 saw no change in prices. The remaining 19 locations saw prices fall somewhere between 0 and 3%.
Commercial land in central Tokyo and Osaka has seen an increase, as has residential land in Tokyo. In greater Tokyo, 37 locations saw prices rise between 0 and 3%, while Tokyo Sky Tree was the only area to see prices rise by between 3 and 6%. Only 7 of the 65 locations saw prices fall between 0 and 3%. In Osaka, none of the surveyed locations saw land prices fall, and commercial land prices in the Abeno area rose by 3 ~ 6%. The Abeno area is home to Abeno Harukas (Abenobashi Terminal Building), which, upon completion in 2014 will be Japan’s tallest building.
The MLIT said that low interest rates and Abenomics has caused an increase in investor demand, however they caution that this is not the early sign of a real estate bubble.
Price rises in Tokyo since last quarter:
- Chiyoda-ku Bancho area (residential): 0~3% rise
- Koto-ku Tsukuda and Tsukishima area: 0~3% rise
- Minamiaoyama: 0~3% rise
- Daikanyama: 0~3% rise
- Takanawa: 0~3% rise
- Toyosu: 0~3% rise
- Shinagawa: No change
- Area around Tokyo Sky Tree: 3~6% rise
- Marunouchi, Otemachi, Yurakucho, Hibiya areas: 0~3% rise
- Akihabara area: 0~3% rise
- Ginza area: 0~3% rise
- Nihonbashi: 0~3% rise
- Roppongi: 0~3% rise
- Shibuya: 0~3% rise
- Omotesando: 0~3% rise
- Ebisu: 0~3% rise
- Nishi Shinjuku: 0~3% rise
- Akasaka, Toranomon: No change
- Hachioji: 0~3% drop
MLIT (The latest report can be downloaded here: http://tochi.mlit.go.jp/generalpage/8049)
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