Japan Land Prices Surge for Fourth Straight Year

On March 18, 2025, Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced a nationwide increase in land prices for the fourth year running. The rise is attributed largely to the sustained economic recovery following the pandemic and a significant resurgence in inbound tourism, particularly benefiting urban and redevelopment zones.

Tokyo

• Commercial Land: Commercial land values increased by an average of 8.2%, with Nakano Ward leading at 16.3%, followed by Suginami Ward (15.1%) and Taito Ward (14.8%). High demand persisted particularly near train stations and urban redevelopment projects.
• Residential Land: Residential land prices rose 4.2%, with significant growth in Chuo Ward (13.9%), Minato Ward (12.7%), and Meguro Ward (12.5%). Tourist hubs like Asakusa in Taito Ward saw substantial increases, driven by higher visitor numbers, while the redevelopment around Shibuya Station further boosted surrounding property values. Tama experienced a 5.3% increase, with neighboring cities Yokohama (+7.2%), Chiba (+8.4%), and Saitama (+4.8%) also reporting gains.

Osaka

• Commercial Land: Marking its third consecutive year of growth, commercial land prices climbed 6.7%. Exceptional increases were seen in Dotonbori (+22.6%) and the area south of Kyoto Station (+21.9%). Overall, Osaka City rose 11.6%, with Kyoto (+10.2%) and Kobe (+5.5%) also performing strongly.
• Residential Land: Residential land values grew by 2.1%, with notable increases in Osaka City (+5.8%). Significant growth occurred in northern Osaka and neighboring cities such as Kyoto (+3.2%) and Kobe (+2.7%). The highest commercial land price recorded was at Grand Front Osaka, peaking at 24.3 million yen per square meter, buoyed by the Grand Green Osaka development project.

Nagoya Area

• Commercial Land: Land prices increased by 3.8%, led by Chikusa Ward (+14.2%). However, growth was moderate compared to Tokyo and Osaka due to comparatively slower inbound tourism recovery.
• Residential Land: An increase of 2.3% was recorded, with Atsuta Ward seeing the largest growth at 8.4%.

The Kitanomine district in Furano, Hokkaido, recorded the highest national increase in residential land value at 31.3%, building on a 27.1% rise in 2024. Hakuba followed closely, with a holiday home neighborhood experiencing a 29.6% increase, after a 19.5% rise last year. Since 2020, Hakuba's land values have surged by 130%. Additionally, a commercial site near Happo-One ski field in Hakuba was ranked fourth nationally for commercial land growth, with a significant 36.8% increase in 2025, following a 30.23% jump in 2024. Although this site's current value remains 71% below its 1995 peak, it has risen 142% from its lowest point in 2018.

These ski towns, renowned for their powder snow, have increasingly attracted developers, investors, and holiday-home buyers looking for more affordable alternatives to Niseko. Niseko's Kutchan Town, however, saw slower growth, recording a 5.2% increase following a modest 1.8% in 2024, a significant slowdown from its approximately 30% annual increases seen between 2018 and 2020.

Miyakojima Island in Okinawa also witnessed strong growth, with residential land in the Ueno district rising 23.1%, placing it third nationally. The island continues to attract luxury developments, including the recent opening of the 55-villa Rosewood Miyakojima resort and the planned 310-room Canopy by Hilton Okinawa Miyakojima in 2026.

Tokyo’s Akasaka district in Minato Ward remains Japan's most expensive residential neighborhood for the eighth consecutive year, with land prices reaching 5.9 million yen per square meter, marking a 10.3% increase. Minato Ward also led the highest growth rate among the top ten most expensive locations (+10.4%).

In major sub-cities, the highest average residential prices were recorded in Chiyoda Ward, Tokyo (3.28 million yen/m²), Nishi Ward, Osaka (865,000 yen/m²), and Naka Ward, Nagoya (1.2 million yen/m²).

Source: Ministry of Land, Infrastructure, Transport and Tourism, 2025 Land Price Report (Reiwa 7)