Commercial land prices in Japan’s regional areas increase for first time in 26 years

On March 27, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released the Chika-Koji assessed land prices for 2018. According to the data, nationwide land prices across all uses increased by 0.7%, a 0.3 point improvement from 2017 and the third year in a row to record a year-on-year increase.Commercial land prices increased for the third year in a row with a 1.9% increase in 2018. Residential land prices increased by 0.3% in 2018. In 2017, residential land prices increased by 0.022%, showing the first increase in 9 years.

Notably, commercial land prices in Japan’s regional areas increased by 0.5% – the first increase since 1992. Residential land prices in regional areas dropped by 0.1%, although the rate of decline has reduced.

The most expensive land in Japan is the site of the Yamano Music Building in Ginza, Tokyo. The land had an assessed value of 55,500,000 Yen/sqm (approx. 48,800 USD/sq.ft) in 2018, up 9.9% from 2017 and the fifth year in a row to record an increase. This land has increased in value by 275% since 2002.

Japan’s apartment living ratios in 2017

Tokyo Kantei has issued their annual report ranking the cities and towns across Japan that have the highest percentage of condominium-type apartments as a share of total households. According to the data, 12.41% of households in Japan were living in apartments in 2017, up 0.10 points from 2016.

In the Tokyo metropolitan area, the ratio was 27.20% – the highest in the country. Kanagawa Prefecture was in second place with 22.68%.

New apartments for sale in Tokyo in 2018

Let’s take a look at some of the new condominiums that will be completed in central Tokyo this year.

JANUARY


GRAND HILLS MOTOAZABU


Size: 75 ~ 156 sqm (816 ~ 1,681 sq.ft)
Pricing: 175 ~ 850 million Yen

Located in a hilltop position atop the Motoazabu district The 5-storey building has 32 spaciously-sized apartments and is 300 meters from the Azabu Juban restaurant street and 800 meters from Roppongi Hills. Prices range from 2,300,000 ~ 5,500,000 Yen/sqm.

New apartment prices in Greater Tokyo up 7.8% in February

According to the Real Estate Economic Institute, 2,490 brand new apartments were released for sale across greater Tokyo in February, up 28.7% from the previous month and up 7.8% from last year. The average sale price was 61,280,000 Yen, up 5.8% from last year. The average price per square meter was 889,000 Yen, up 4.3% from last year.

The contract ratio was 65.0%, down 3.4 points from last year and down 0.2 points from the previous month.

Luxury hotel and condominium planned for Ebisu

Nomura Real Estate Development is planning a mixed-use hotel and condominium complex for a 4,000 sqm block of land near Ebisu Station in central Tokyo. Mixed-use hotel / apartment projects are quite uncommon in Japan, with one of the few examples being Mori Building’s Toranomon Hills tower in Minato ward.

Nomura acquired the site in March 2017 for 10.5 billion Yen through a public bidding process. It was previously a government-owned housing complex for civil servants. The government required the buyer to build both apartments and accommodation facilities as a condition of the sale.