Official Land Prices of Japan in 2023 – Tokyo’s prices see increase for 2nd Consecutive year both in Commercial Areas and Residential Areas
On March 22, 2023, the Ministry of Land, Infrastructure, Transport, and Tourism announced the official land prices as of January 1, 2023. The data for 2023 shows a 1.6% increase nationwide (0.6% in 2022) in the fluctuation of the average prices for all types of land zoning, and the rate of increase has become fairly close to the level of 1.7% increase in 2008 which was marked before the financial crisis after the bankruptcy of Lehman Brothers. In “Commercial areas”, due to the increase in the major cities with the recovery of traffic of people and the inflow of overseas money, the national average land price fluctuation rose by 1.8% (0.4% in 2022), and in “Residential areas” the same price fluctuation rose by 1.5% (0.5% in 2022) due to soaring condominium prices in urban areas and the spread of telework in suburban areas with convenience of public transportation.
The 2023 average land price for Tokyo has seen an increase fluctuations from 2022 in all areas of zoning for the 2nd consecutive year, which include increase of 3.3% (0.6% in 2022) in Commercial areas, 2.6% (1.0% in 2022) in Residential areas, and 2.8% (0.9% in 2022) in the average fluctuation of all the areas of zoning.
The average fluctuation in the land price for Tokyo's Commercial areas has seen rise of 3.3% (0.6% in 2022). The average rate of increase across the 23 wards was 3.6% (0.7% in 2022), including the highest increase in Nakano-ku, Kita-ku, Arakawa-ku (5.2%), followed by Suginami-ku (4.7%), and Bunkyo-ku, Meguro-ku, and Toshima-ku (4.6%).
Looking at the top 10 Commercial areas with the highest rate of increase, the 3 land points in the Asakusa area were ranked in, including the land point of Asakusa 2-chome, Taito-ku which marked the highest increase rate by 8.8%. An official of Tokyo Metropolitan Government explains that expectations for the revival of the tourism industry, which had been sluggish due to the coronavirus pandemic, have increased, and buying and selling have become active in the areas popular with foreign tourists.
This year’s official land price ranking for commercial properties (shown below) shows that all the top 10 highest price points in Japan are properties located within Tokyo. This year Ginza, in Chuo-ku, is in possession of 6 of the top 10 land points, including the top 4 points on the highest land price list, with its Yamano Music Ginza Main Store (5,380,000JPY/sqm) taking first place.
The average fluctuation in the land price for Tokyo's Residential areas sees rise by 2.6% (1.0% in 2022). In all Tokyo’s 23 wards the average price fluctuation rose by 3.45 (1.5% in 2022), including the highest increase shown in Taito-ku (4.8%), followed by in Toshima-ku (4.7%) and Nakano-ku (4.6%). In the 5 wards in Central Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) the average price fluctuation rose by 3.8% (2.2% in 2022) while other wards rose 3.4% (1.4% in 2022). According to an official of the Tokyo Metropolitan Government, “these results are due to the people’s review of their living environment based on the spread of teleworking and restrictions of activities during the coronavirus pandemic, and the high demands of the suburban areas with convenience of living and transportation. Since the land prices in central Tokyo soared, those in the suburban areas with a large supermarket near the station may be felt relatively inexpensive and attractive.”
The highest rate of increase was marked in Adachi-ku Ayase 1-chome (8.1%), followed by in Adachi-ku Senju Midoricho 1-chome (7.9%), and Arakawa-ku Nishi-nippori 1-chome (7.8%), which are the locations around the stations close to Central Tokyo or convenient for everyday shopping.
The 2023 official land price ranking for residential properties (shown 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 5,120,000 yen per 1 square meter, making it the highest land price point for the 6th consecutive year, and its increase was 2.4% from 2022. It is considered that demands from high-income people, who are deemed to have been less affected by the corona disaster, have propped up the price levels in the areas with high land prices.
(Reference: 2023/03/23 NIKKEI Newspaper, Tokyo Shimbun)
2023 Official Land Price Ranking by Property Nationwide
|Ranking||All 10 are in Tokyo||JPY/sq.m||Fluctuation (% from 2022)|
|1||4-5-6, Ginza, Chuo-ku
(Main store of Yamano Music Co.）
|2||5-4-3, Ginza, Chuo-ku
|3||2-6-7, Ginza, Chuo-ku
(Meidi-ya Ginza Building）
|4||7-9-19, Ginza, Chuo-ku
|5||2-4-1, Marunouchi, Chiyoda-ku
|6||3-24-1, Shinjuku, Shinjuku-ku
|7||3-30-11, Shinjuku, Shinjuku-ku
(Shinjuku Takano Building No.2)
|8||2-2-1, Otemachi, Chiyoda-ku
|9||4-2-15, Ginza, Chuo-ku
(Tsukamoto Soyama Building)
|10||6-8-3, Ginza, Chuo-ku
(Ginza Owaricho TOWER)
|10||23-3, 23-3, Udagawa-cho, Shibuya-ku
(Shibuya Dai-ichi Kangin Kyodo Building)
2023 Official Land Price Ranking by Property Nationwide
|Ranking||All 5 are in Tokyo||JPY/sq.m||Fluctuation (% from 2022)|
|1||1-14-11, Akasaka, Minato-ku||5,120,000||2.4|
|2||6-1, Rokubancho, Chiyoda-ku||4,280,000||3.1|
|3||3-16-10, Shirokanedai, Minato-ku||3,990,000||2.8|
|4||4-9-34, Minami-Azabu, Minato-ku||3,750,000||2.7|
|5||1-5-11, Minami-Azabu, Minato-ku||3,390,000||4.3|
(Source: 2022/03/22 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, evaluates the price of each point of land as of January 1st every year, and announce it as a benchmark price for land transactions. The total selected points of land in Tokyo as of year 2023 are 2,602 points; the number of points per each purpose are 1,697 points for residential areas, 857 points for commercial areas, and 40 points for industrial areas, 8 points for forest lands, respectively.