Average land prices in Japan dipped 1.8 percent in January compared to the same period a year ago, according to a survey by the country’s National Tax Agency.
However, the rate of decline was the lowest in five years, following a drop of 2.8 percent in 2011 and 3.1 percent in 2010 — a sign that the country’s property market is steadily rebounding.
Land prices will likely continue to recover due to better economic prospects and an anticipated pick-up in home sales before the implementation of a tax hike next April.
Prices of land in two prefectures rose last year for the very first time in five years, while the pace of price declines in other prefectures eased.
Land prices in north-eastern Miyagi prefecture rose 1.7 percent due to rebuilding efforts following the 2011 killer tsunami, while those in Aichi prefecture inched up 0.1 percent due to higher demand for office and residential property.
But the pace of decline for land prices in Tokyo and nearby prefectures slowed to 0.6 percent from a 1.5 percent drop a year ago.
However, the average price of Japan’s most expensive land area — Tokyo’s Ginza shopping district was at ¥21.52 million psm (S$276,437 psm) in 2012, down from ¥36.5 million psm (S$465,209 psm) in the early 1990s.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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