Official Land Prices of Japan in 2018 – Increase of price rise in Tokyo Commercial and Residential Areas

Post date: Thursday, April 12, 2018

On March 27, 2018, the Ministry of Land, Infrastructure, Transport, and Tourism announced the official land prices as of January 1, 2018. The data for 2018 shows a 0.7% nationwide increase in the fluctuation of the average prices for all types of zoned land. For the first time since 1992, the land price has continued to increase consecutively for 3 years. The current trend shows that, in response to an increase in foreign visitors, many new hotels and stores are being opened which are in turn contributing to the 3-year consecutive rise of land price in commercial areas. Another trend shows that the 2-year consecutive rise in land price for residential areas is due to actual market demands combined with ongoing government support policies such as monetary easing.

The average land price in Tokyo has seen a 3.4% price increase for all types of zoning. The previous years price increase was 0.6%. The land price, along with the rate of increase, has continued to grow for the past 5 consecutive years.


The average fluctuation in the land price of Tokyo's commercial areas has increased by 5.4%.
 This is an increase of 0.7%  more than last years increase of 4.7%. All wards in Tokyo have shown an increase in their land price rates this year. It should be noted that of Tokyo's 23 wards, 18 have shown increases of more than 5%. Of these 18 wards, 10 have shown an increase of 5% more than the previous year. With these increases in the land price rate, it can be observed that the market is becoming increasingly active throughout Tokyo’s 23 wards.

Compared to the previous year, Tokyo’s average increase in the land price rate for commercial areas has gone up by 0.9% (from 5.5% to 6.4%). Last year's highest increase was 9.2% in Shibuya-ku, followed by 8.4% in Chuo-ku, and 7.3% in Taito-Ku.

When ranking this year’s land price increases for commercial areas, 8 out of 10 of the top price increases were around Shibuya station. In comparison, the previous years top 7 out of 10 increases were in the Ginza area. Large-scale redevelopment projects taking place around Shibuya Station, are partly responsible for the dramatic increase in Shibuya's land price.

While Shibuya holds 8 out of 10 top ranking spots for the areas with the highest land price rate increase, Ginza holds the remaining two spots, ranking 1st and 3rd. The opening of a newly built large-scale commercial facility in Ginza’s 6-chome is still causing the land price rate to increase–though it is starting to plateau. The ranking for this year’s official land price rate increases shows that the 10 highest price increases are all properties in Tokyo. This year Ginza’s Chuo-ku is in possession of 6 out of 10 spots on the top 10 highest land price list, with its Yamano Music Ginza Main Store taking first place.

This year's price increase in residential areas was 2.4%, a 0.5% increase over the 1.9% increase in price from the previous year. Tokyo’s 23 wards’ average land price increase was 3.9%, a 0.9% increase over the 3.0% increase from the previous year. This marks 2018 as the 5th consecutive year that the average land price rate in Tokyo's 23 wards has increased. The highest rate of increase within the 23 wards–when compared with the previous year–was 6.1% in Arakawa-ku, followed by 5.6% in Kita-ku, 5.5% in Bunkyo-ku and Shinagawa-ku.

According to the Tokyo Metropolitan Government Bureau of Finance, “the apartment demand in central Tokyo remains steady, but is likely to slow down due to an increase in caution against overvalued price levels”. On the outskirts of Tokyo, demand is growing and the land price is on more of an upward trend that the previous year. This is due specifically to the conveniences of daily life and a comfortable price point.

The official land price ranking of residential properties for 2018, below, shows that 5 of the highest land prices in Japan are within Tokyo’s borders. The most expensive place is “1-14-11, Akasaka” in Minato-ku at 4.01 million yen per 1 square meter. As a more affluent populace has started occupying Akasaka the demand for apartments has risen. Originally holding the top spot on the list for 6 consecutive years, “6-1, Rokubancho” in Chiyoda-ku has dropped down to second place.



2018 Official Land Price Ranking by Property Nationwide


(Commercial Properties)
  Address (all 10 are in Tokyo) JPY/sq.m Fluctuation
(% from 2016)
1 4-5-6, Ginza, Chuo-ku
(Main store of Yamano Music Co.)
55,500,000 9.9
2 5-4-3, Ginza, Chuo-ku
(Taikakukan Building)
47,000,000 9.3
3 2-6-7, Ginza, Chuo-ku
(Meidi-ya Ginza Building)
40,600,000 9.7
4 7-9-19, Ginza, Chuo-ku
(ZARA)
40,100,000 9.6
5 2-4-1, Marunouchi, Chiyoda-ku
(Marunouchi Building)
35,700,000 2.3
6 3-807-1, Shinjuku, Shinjuku-ku 34,000,000 12.6
7 3-30-11, Shinjuku, Shinjuku-ku
(Shinjuku Takano Building No.2)
33,200,000 12.5
8 6-8-3, Ginza, Chuo-ku 
(Ginza Owaricho TOWER)
29,100,000 16.9
9 4-2-15, Ginza, Chuo-ku
(Tsukamoto Soyama Building)
28,100,000 8.9
10 3-3-1, Marunouchi, Chiyoda-ku
(Shin-Tokyo Building)
27,500,000 2.6
(Source: 2018/03/28 NIKKEI Newspaper)

2018 Official Land Price Ranking by Property Nationwide


(Residential Properties)
  Address (all 5 are in Tokyo) JPY/sq.m Fluctuation
(% from 2017)
1 1-14-11, Akasaka, Minato-ku 4,010,000 9.0
2 6-1, Rokubancho, Chiyoda-ku 3,850,000 2.7
3 3-16-10, Shirokanedai, Minato-ku 3,360,000 8.4
4 4-19-1, Minami-Azabu, Minato-ku 3,010,000 9.5
5 6-25, Sanbancho, Chiyoda-ku 2,970,000 3.1
(Source: 2018/03/28 NIKKEI Newspaper)


What is Official Land Price?


Based on the Public Notice of Land Prices Act, the "Land Appraisal Committee of the Ministry of Land, Infrastructure, Transport and Tourism" selects the points of land to evaluate the price of on January 1st every year. They announce the prices and use them as benchmarks for land transactions throughout the year. The total selected points of land in Tokyo–as of the year 2016–are 2,531 points (this year 369 additional points of land were selected). The number of points broken down by zoning type are: 1,673 points for residential areas, 823 points for commercial areas, and 35 points for industrial areas respectively.

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