Standard Land Price for Tokyo in 2022 - Turned to 2% Rise in the Commercial Areas, High Increase in the suburbs of Central Tokyo

Poste date: Monday, September 26, 2022

On September 20th, the Ministry of Land, Infrastructure, Transport and Tourism announced the standard land prices for their selected points nationwide. On the same day, the Tokyo Metropolitan Government also announced the land prices of their selected locations in Tokyo. The standard land price (*later explained in more detail) refers to the price of land per 1 square meter for selected locations as of the 1st of July each year.

The average rate of land price fluctuation for all usages in Tokyo has increased by 1.7% from last year (2021), which marks the 10th consecutive year of the increase rate.

For Commercial Areas, the average price fluctuation rate has increased by 2.0%, which is the first increase in 2 years, and for Residential Areas, the average price fluctuation rate has also increased by 1.5%, which is a larger increase than the same rate in the last year (increase by 0.2%) and the 10th consecutive year of increase. While easing the spread of Covid-19 pandemic, it is observed that the upward price trend has been coming back mainly in highly convenient areas.

Commercial Area

The average land price fluctuation in Tokyo has turned positive to the increase by 2.0% from the decrease by 0.3% (from 2020) in 2021. This year’s average price fluctuation, within the 23 wards of Tokyo, is 2.2% from 2021, which has also turned positive from the decrease by 0.3% (from 2020) in 2021. While the rate of increase in “5 wards in Central Tokyo” increased only by 1.0%, increase ranking of the 23 wards has shown that Suginami-ku gained the largest increase rate at 3.8%, followed by Kita-ku (increased by 3.7%) and Nakano-ku and Arakawa-ku (both increased by 3.5%).

Among the 23 wards, the highest rate of increase was gained in Senju 3-chome in Adachi-ku (increased by 6.2%), near Kita-Senju Station which is on various train lines. Three of the top five price increase points including Senju Asahicho in the same ward (increased by 6.0%), which is in the 2nd place, were the locations around the same station. Nakano 5-chome in Nakano-ku (increased by 5.9%) ranked 3rd (ranked in Top 5 for the 2nd consecutive year) is a location near Nakano Station where redevelopment around the station is underway.

On the other hand, the points of the downtown in Chuo-ku and Chiyoda-ku, which marked decline in the last year, continuously showed their downward price trend. Ginza 7-chome in Chuo-ku was the top decliner in the 23 wards (-2.3%), and all five top decliners were the points in Chuo-ku, which are the points in Ginza and Kyobashi.

However, the point with highest rate of decline in the last year, which was marked at Kabukicho 1-chome, Shinjuku-ku, was turned to flat fluctuation due to the redevelopment in the surrounding area and the resumption of restaurant operations, and even in these areas with declining trend, the rate of decline shrank as a whole compared to that in the previous year.

The highest price point in Japan—remaining unchanged for 17 consecutive years—is the Meijiya Ginza Building at 2-6-7, Ginza, Chuo-ku. The price, 39,300,000yen per square meter (39,500,000yen in 2021) has decreased by 0.5%, which is the 3rd consecutive year of negative fluctuation.

Residential Area

The average price increase within Tokyo was 1.5%, which is an increase of the positive fluctuation from 0.2% in the last year (2021). Looking at the 23 wards, the average fluctuation rate was 2.2%, which is an increase from 0.5% in 2021. The highest increase in price for residential areas within 23 wards this year was 4.0% in Chuo-ku (1.1% in 2021), followed by 3.7% in Shinjuku-ku, and 3.3% in Nakano-ku and Toshima-ku. The average fluctuation for the 5 wards in Central Tokyo was 3.1% and the same for other wards was 2.1%, both of which were an increase fluctuation from the rates in 2021.

In the 23 wards, the land point in Arai 2-chome, Nakano-ku, which has risen by 5.6%, has been ranked as the largest rate of increase. There was no point of decline in the 23 wards. The rate of increase was high in the areas with high convenience of living. The highest land price point in Tokyo was 5,040,000yen per square meter at Akasaka 1-chome, Minato-ku.

Land Prices (Nationwide)

Noteworthy points about this year’s standard land prices (as of July 1st) announced by the Ministry of Land, Infrastructure and Transport, is that the national land price average for all types of land usage have shown an increase of 0.3% (from 2021), which is the first positive increase in three years. Among them, the national land price average for the residential areas marked an increase fluctuation for the first time in 31 years since 1991, and the number of prefectures with an increase fluctuation became 14 prefectures which is doubled from the number in the last year.

An increase trend stands out in the regional core cities and their suburbs such as Fukuoka and Sapporo, where redevelopment is in progress, in addition to the suburbs of Tokyo, and the residential areas with favorable locations and environments are gaining popularity. It reflects the government’s long-term low interest rate policy and lifestyle changes during the coronavirus pandemic, which have stimulated the demands for buying homes in the suburbs. The trend also shows that there is a growing tendency for home buyers to emphasize the value of living space such as the number and size of rooms.

Ranking by Top 5 Price Increase points and Decrease points(23 Wards

Commercial Area saw high rises in the areas away from central Tokyo

 

  Address Points Price(1000Yen/㎡) Fluctuation(%)
▼Address of Price Rise Points
Commercial Area ➀ 3-70-2, Senju, Adachi-ku 1,550 6.2
➁ 40-22, Senju Asahicho, Adachi-ku 1,420 6.0
➂ 5-64-9, Nakano, Nakano-ku 5,170 5.9
➃ 24-2, Senju Nakamachi 550 5.4
➄ 3-43-9, Higasi-Nippori, Arakawa-ku 853 5.3
▼Address of Price Down Points
Commercial Area ➀ 7-3-14, Ginza, Chuo-ku 6,000 -2.3
➁ 6-8-3, Ginza, Chuo-ku 28,300 -0.7
➂ 2-4-15, Kyobashi, Chuo-ku 15,100 -0.7
➃ 7-16-7, Ginza, Chuo-ku 3,050 -0.7
➄ 7-11-14, Ginza, Chuo-ku 7,750 -0.6
▼Address of Price Rise Points
Residential Area ➀ 2-8-10, Arai, Nakano-ku 695 5.6
➁ 5-1-9, Harumi, Chuo-ku 1,120 4.7
➂ 1-7-4, Toyama, Shinjuku-ku 703 4.5
➃ 3-32-7, Takada, Toshima-ku 880 4.4
➄ 1-3-7, Ariake, Koto-ku 725 4.3

(Source for data: Tokyo Metropolitan Government Bureau of Finance, Nihon Keizai Shimbun  *Round off to one decimal place)

What is the Standard Land Price?

The standard land price is the price of land per 1 square meter and is calculated for each selected point of land as of the 1st of July each year. The Prefectural Governments are responsible for its survey and the Ministry of Land, Infrastructure, Transport and Tourism release the nationwide results. It is one of the two major representative data that shows the fluctuation of land price along with the official land price that is announced on Jan.1 every year.

The standard land price is the price of land per 1 square meter and is calculated for each selected point of land as of the 1st of July each year. The Prefectural Governments are responsible for its survey and the Ministry of Land, Infrastructure, Transport and Tourism release the nationwide results. It is one of two major pieces of representative data showing the fluctuation of land price, along with the official land price, and its results are announced on the 1st of January of each year.

* Reference source: Nihon Keizai Shimbun, Tokyo Shimbun dated September 20, 2022

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