Japan's Land Prices Surge for the Third Year in a Row, Driven by Booming Tourism and Foreign Investment
For the third consecutive year, Japan has seen a rise in land prices, spurred by a surge in inbound tourism and increased foreign investment. Nationwide, land values have climbed by 1.4%, with residential land prices increasing by 0.9% and commercial properties seeing a more substantial rise of 2.4%.
This data comes from an annual land report released on September 17 by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which analyzed prices from 21,436 reference sites across the country.
The report highlights a significant boost from unprecedented levels of tourism and a weak yen, which has made Japan an attractive destination for foreign investors. This has especially impacted the hotel industry, with increased foreign investment fueling the development of new accommodations and infrastructure projects in cities like Sapporo and Niseko.
In addition to tourism and foreign interest, other factors contributing to the rise in land prices include growing demand for industrial land near transport hubs, fueled by the e-commerce boom, as well as the expansion of semiconductor factories and data centers. This year’s land price increase marks the steepest growth since 1992.
While the sharpest increases were seen in the major metropolitan areas of Tokyo, Osaka, and Nagoya, Japan's four key regional cities—including Sapporo—have also experienced a continued rise in property values, with both residential and commercial land prices increasing for the 12th consecutive year.
Investment in land in Japan comes with incredible security, aside from the fact that international investors are treated exactly the same as Japanese investors (unlike countries such a Singapore for example). Title transfers are clean, ownership is 100% and almost all land is freehold.
