Land prices up in 71% of locations – MLIT LOOK Report

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) published the data on land price movements across Japan for the third quarter in 2013 (July 1 ~ October 1).

The Chika LOOK Report measures land price changes in 150 locations throughout Japan. According to the latest data, 107 locations (71.3% of the total) saw an increase in land prices. This is higher than the last quarter which saw 99 locations with an increase in land prices. 34 locations (22.7%) saw no change in prices, while 9 locations (6%) saw a fall in land prices.

Of the 44 residential land locations, 35 (79.5%) saw an increase in land values while 2 locations (4.5%) saw a decrease. 72 of the 106 commercial locations saw an increase, while 7 locations saw land prices decrease.

In greater Tokyo, 46 of the 65 surveyed locations saw an increase in land prices while 4 locations saw a decline. In greater Osaka, 28 of the 39 locations saw land prices increase, while the remaining 11 locations saw no change in prices.

Land price changes nationwide (% of locations that saw an increase, no change or decrease in prices):

YearIncreaseNo ChangeDecrease
2008 Q141.0%50.0%9.0%
2008 Q213.0%49.0%38.0%
2008 Q30%14.7%85.3%
2008 Q40%1.3%98.7%
2009 Q10%1.3%98.7%
2009 Q20%2.0%98.0%
2009 Q30%2.0%98.0%
2009 Q40.7%3.3%96.0%
2010 Q11.3%16.7%82.0%
2010 Q22.7%27.3%70.0%
2010 Q31.3%40.7%58.0%
2010 Q410.7%36.0%53.3%
2011 Q11.4%31.5%67.1%
2011 Q24.8%36.3%58.9%
2011 Q37.3%40.7%52.0%
2011 Q410.7%46.7%42.7%
2012 Q114.7%53.3%32.0%
2012 Q222.0%54.7%23.3%
2012 Q322.7%58.0%19.3%
2012 Q434.0%49.3%16.7%
2013 Q153.3%34.0%12.7%
2013 Q266.0%27.3%6.7%
2013 Q371.3%22.7%6.0%

Land price rises in Tokyo:

RESIDENTIAL LAND PRICES

  • Chiyoda-ku Bancho area: 0~3% rise
  • Koto-ku Tsukuda and Tsukishima  area: 0 ~ 3% rise
  • Minamiaoyama: 0 ~ 3% rise
  • Daikanyama: 0 ~ 3% rise
  • Takanawa: No change
  • Toyosu*: 0 ~ 3% rise
  • Shinagawa: 0 ~ 3% rise

*Toyosu is one of the man-made islands in Tokyo Bay. According to the MLIT’s LOOK report, land prices in Toyosu have seen slight increases for the past 8 quarters.  While demand from apartment buyers is predicted to remain bullish, the considerable supply of new apartments is expected to continue. Although the supply is expected to be absorbed, competition between developments will be high. It is therefore unclear whether this could lead to increased apartment prices.

COMMERCIAL LAND PRICES

  • 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: 0 ~ 3% rise
  • Area around Tokyo Sky Tree: 0 ~ 3% rise
  • Hachioji: 0 ~ 3% drop

Source: