Real estate pricing in Japan - 6 different land prices

Poste date: Wednesday, June 7, 2017

The price of land in Japan can be broken into 6 different types depending on the purpose for the land evaluation and the type of research being conducted.


There are different types of pricing because the price of land is decided by taking multiple factors into account such as land condition, purpose of usage, who wants the land, and so on. This has resulted in the following price types that have been divided by purpose and evaluation methods.

Price Type Details

Market Price

  • Quoted market price based on an actual land transaction.
  • Quoted and evaluated from actual recent transaction prices, asking prices, and opinions of realtors for the intended area of land.

Official Land Price

Research Conductor: Ministry of Land, Infrastructure, Transport and Tourism

Reference Date (Announcement Date): January 1st every year (Around March 20th every year)

  • Public price index for land transaction (Spring Price).
  • Evaluated by 2 licensed real estate appraisers separately on each selected point of land mostly within the designated zone of called the ‘city planning areas’.

Standard Land Price

Research Conductor: Local Prefectural Governments

Reference Date (Announcement Date): July 1st every year (Around September 20th every year)

  • Public price index for land transaction (Autumn Price).
  • Same as the Official Land Price but the selected plots of land include various land zones outside of the ‘city planning areas’.

Roadside Land Price

Research Conductor : National Tax Agency

Reference Date (Announcement Date):  January 1st every year (early August every year)

  • Used for evaluating inheritance taxes and gift taxes.
  • Decided by referencing the Official Land Price, actual transactions, and evaluations by licensed real estate appraisers. A rough estimate is 80% of Official Land Price.

Assessed value of fixed assets

Research Conductor : Municipal Governments

Reference Date (Announcement Date) :  January 1st every 3 years (early April every year)

  • Used for calculation of Property tax, City planning tax, Real estate acquisition tax, and Registration and License tax.
  • Decided by Property Tax Evaluation Standard made by the Japanese government. A rough estimate is 70% of Official Land Price.

Appraised value

  • Individual land price evaluated by a licensed real estate appraiser upon specific request. Price range tends to vary widely depending on the time of evaluation.



Of the above price types, the Official Land Price, Standard Land Price, Roadside Land Price, and Assessed value of fixed assets can be catalogued in the public price index. From those 4, the Roadside Land Price and Assessed value of fixed assets are used for tax purposes. Property tax is imposed on assets and is calculated by from the appraised value depending on the Evaluation Standard used.

During an actual transaction, the market price will be used. The market price is a competitive price that is usually decided by a realtor based on evaluating recent land transactions within the vicinity, the shape of the land, accessibility to roads, its location, as well as other positive and negative factors.

 

Exterior of DIANA GARDEN NISHIAZABU
Sale Property tag

Hiroo, Aoyama, and Roppongi are within the living area. A luxury condominium apartment built on the hilltop in 4-chome, Nishi-azabu, along a tree-lined street. Sold by MORIMOTO Co.,Ltd. The building and unit rooms made of quality materials offer a full line of good designs. Room equipment is arranged for functionality and comfort.

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Exterior of Asahi Satellite Roppongi
Sale Property tag

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JPY 50,990,000

Exterior of Parkhouse Roppongi Azabu-mikawadai
Sale Property tag

Park House Roppongi, located on a hill in the area locally called as “Azabu Mikawadai”, was constructed by Toda Corporation in November 1996 and sold by Mitsubishi Estate Co., Ltd. It is located at the address of “4-chome, Roppongi, Minato-ku” and within walking distance of commercial facilities such as Tokyo Midtown and Roppongi Hills, while it is in a good living environment with lush greenery close to Hinokicho Park and Akasaka Hikawa Shrine. Solid security management includes 24-hour manned management (with night security guard) in the shared spaces. Large-scale renovation work was completed in 2016.

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Exterior of Majes Motoazabu Gardens D
Sale Property tag

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JPY 650,000,000

Exterior of The Dochester Minami-aoyama
Sale Property tag

2-min walk from Nogizaka Station and 5-min walk from Tokyo Midtown. It is a 6-story low-rise apartment with 14 total units, located in a quiet residential area a little away from Gaien Higashi-dori Avenue. The location has an attractive living environment as Roppongi and Aoyama-itchome is within a daily living area. It features a stately appearance with red brick tiled and granite tilted design, the entrance door with black lattice decoration, and a luxury hotel-like entrance lobby. All the units are corner units with balconies on the multiple sides, having good ventilation and plenty of sunlight. It offers mostly spacious unit plans from 2LDK to 3LDK type with the floor area of 104sqm to 191sqm, which are desirable for foreign families. The units come with a full range of functional equipment such as floor heating, water purifier, dishwasher, garbage disposer, bathroom dryer, etc. to support comfortable daily life of the residents.

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Exterior of Clover Roppongi
Sale Property tag

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JPY 255,000,000