Rising Official Land Prices, spreading nationwide
2018.03.31 NewsThe wave of land price rise has spread all over the country. Publicly listed land prices as of January 1, 2018 released by the Ministry of Land, Infrastructure and Transport on January 1, 2018 increased by 0.7% in all commercial (industrial) and residential uses (nationwide) for the third consecutive year. Rural areas also started to rise for the first time in 26 years, which was a positive 0.041%. Mitigation money is underpinned, and demand for hotels and shops is increasing in rural areas as a result of the increase in visitors to Japan. Redevelopment of urban areas is also active, and asset deflation has been resolved.
After the collapse of the bubble, it took time to adjust land and employment, but the rise in land prices for the third consecutive year is the first since 1992. According to the National Economic Calculation of the Cabinet Office, "land asset amount" showing the total land value is 1182 trillion yen in 2004. Although it is 60% of the bubble period, it has been upward for the third consecutive year and reflects the steady recovery of the current economy and land prices.
Japan's stock assets amounted to 300 trillion yen in the second half of the 1990s after the collapse of the bubble, but it increased to over 700 trillion yen in 2004. Even if you have stocks, condominiums, and land, asset deflation has become a hindrance to the recovery of the Japanese economy. However, by leaving the negative side, a positive investment will be created in a convenient place. It also leads to an increase in consumption.
Residential land has risen to 0.3% nationwide for 18 years and residential area has risen to 0.3% nationwide for the second consecutive year, commercial area 1.9%, for the third consecutive year, the rate of increase has increased from 2017. Although it does not reach the latest peak before the Lehman shock in 2008, the Ministry of Land, Infrastructure, Transport and Tourism said, "Unlike in the bubble period, the gradual rise supported by actual demand is continuing".
An increase in the number of visitors to Japan, which grow at a pace of 20% per year, pushed the rise in land prices. The number of visitors to Japan in 2005 was 28.69 million, a record high.
An increase in the number of visitors to Japan, which grow at a pace of 20% per year, pushed the rise in land prices. The number of visitors to Japan in 2005 was 28.69 million, a record high.
It also supported easing money relating to the Bank of Japan's low interest rate policy and is on a recovery trend in the center of major cities where office redevelopment demand and convenience are high. According to the investigation by Mitsui Sumitomo Trust Basic Research Institute, the first month contract rate of condominiums in Tokyo's 23 wards is as high as 86% in the price range of 100 million yen to 150 million yen.
