Standard land prices increase in major cities in 2015

Omotesando Intersection
The Omotesando Intersection. Land prices at a survey point increased by 20.2% over the past 12 months.

Yesterday the MLIT released the standard land prices (kijun-chika) for Japan’s major cities and regional areas. Nationwide, land prices declined for the 24th year in a row, although the 0.9% decline in 2015 is down from the 1.2% drop seen in 2014.

Buoyed by growing foreign tourist numbers, redevelopment projects, an economic recovery and monetary easing, the three major cities of Tokyo, Osaka and Nagoya, saw commercial land prices rise by 2.3% (up from a 1.7% increase in 2014). Residential land prices in these cities grew by an average of 0.4% (down slightly from the 0.5% increase in 2014).

69.9% of the surveyed commercial locations in the three cities saw an increase in prices (up from 68.0% of locations in 2014), while 44.7% of residential areas saw an increase (compared to a 46.9% share in 2014).

The redevelopment around Nagoya Station in anticipation of the new maglev train, scheduled to start services between Tokyo and Nagoya in 2027, has led to a large increase in land prices. Some locations have increased by between 25 ~ 45%.

Commercial land prices in Omotesando up 20.2%

In Omotesando, Tokyo’s fashion centre, high demand from retail tenants looking for prime street frontage has pushed prices up by as much as 20%. The standard land price for the Minamiaoyama 5-1-27 site, which is on the Omotesando intersection, was 11,600,000 Yen/sqm in 2015, up 20.2%. A residential site in Minamiaoyama 4-26-18 (near Nezu Museum) increased by 8.1% from last year to 1,470,000 Yen/sqm.

In Ginza 6-8-3, the commercial land price increased by 19.6% from last year to 17,700,000 Yen/sqm.

Although investors and the wealthy looking to reduce their inheritance taxes have been the driving force behind the high demand for condominiums in central Tokyo, the demand in outer suburbs is dull.

Regional areas continue to see declining property prices, with land prices down 1.5%. The decline is caused by a shrinking population.

3 Major Cities-0.1%+0.5%+0.4%
Greater Tokyo-0.1%+0.6%+0.5%
Greater Osaka-0.4%+0.1%0.0%
Greater Nagoya+0.7%+0.9%+0.7%
3 Major Cities+0.6%+1.7%+2.3%
Greater Tokyo+0.6%+1.9%+2.3%
Greater Osaka+0.4%+1.5%+2.5%
Greater Nagoya+0.7%+1.5%+2.2%

Land price changes in Tokyo:


Average residential land prices in Tokyo per square meter:

  • Chiyoda-ku: 2,402,500 Yen/sqm
  • Minato-ku: 1,323,000 Yen/sqm
  • Shibuya-ku: 972,200 Yen/sqm
  • Chuo-ku: 908,700 Yen/sqm
  • Meguro-ku: 680,000 Yen/sqm
  • Shinagawa-ku: 655,900 Yen/sqm
  • Shinjuku-ku: 586,100 Yen/sqm
  • Setagaya-ku: 527,900 Yen/sqm

Land prices in sample survey locations and price increases:


  • (Chuo-ku): 1,090,000 Yen/sqm (+11.1%)
  • (Shinagawa-ku): 865,000 Yen/sqm (+10.9%)
  • (Chuo-ku): 895,000 Yen/sqm (+10.5%)
  • (Minato-ku): 1,470,000 Yen/sqm (+8.1%)


  • (Minato-ku): 11,600,000 Yen/sqm (+20.2%)
  • (Chuo-ku): 17,700,000 Yen/sqm (+19.6%)
  • (Minato-ku): 9,200,000 Yen/sqm (+17.6%)
  • (Chuo-ku): 26,400,000 Yen/sqm (+16.8%)
  • (Minato-ku): 9,020,000 Yen/sqm (+15.2%)
  • (Shinjuku-ku): 13,000,000 Yen/sqm (+15.0%)

The Nikkei Shimbun, September 16, 2015.
MLIT, September 16, 2015.

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