Average land value in Japan falls for first time in 3 years

The nationwide average of standard land values fell 0.6% from a year ago as of July 1, according to the Land, Infrastructure, Transport and Tourism Ministry. It is the first decline in three years. The average values of land for residential, commercial and industrial use all fell. This is thought to be because companies and individuals have been reluctant to purchase land due to the economic downturn caused by the novel coronavirus epidemic.

The average value of commercial land fell 0.3%, marking the first decline in five years. In the previous year, the average value rose 1.7%. Rates of increase in the Tokyo and Osaka metropolitan zones were smaller, and the average value in the Nagoya metropolitan zone fell for the first time in eight years.

The national average of residential land values fell 0.7%, marking the 29th consecutive year of decline. The rate of decline was 0.6 percentage points greater than in the previous year. Average values in the Tokyo and Osaka metropolitan zones fell for the first time in seven years, and for the first time in eight years in the Nagoya metropolitan zone.

According to the ministry, land values were trending upward until the latter half of 2019, but have been falling since the start of this year.

The most expensive commercial land nationwide was valued at ¥41 million per square meter at the Meijiya Ginza Building in Chuo Ward, Tokyo. The building tops the list for the 15th consecutive year. A block in Akasaka, Minato Ward, Tokyo, was recorded as the most expensive plot of residential land for the second consecutive year, valued at ¥4.72 million per square meter.

Yomiuri Shimbun file photo Central Tokyo is seen in this aerial photo taken on May 26.