Japan Average Land Price Down for 1st Time in 3 Years

Economy Politics

Tokyo, Sept. 29 (Jiji Press)--The average land price in Japan as of July 1 fell 0.6 pct from a year before, the first drop in three years, the land ministry said Tuesday.

Japanese land price growth screeched to a halt as the novel coronavirus outbreak dampened real estate demand that had been supported by an increase in foreign travelers.

The average commercial land price slid 0.3 pct, the first fall in five years, as demand for land to build shops and hotels waned from early this year due to uncertainty fueled by the spread of COVID-19. Last year, the average rose 1.7 pct.

Residential land prices decreased 0.7 pct on average, bigger than the previous year's 0.1 pct drop.

The average residential land price declined in all of the country's three biggest metropolitan areas in and around Tokyo, Osaka and Nagoya, which had enjoyed strength particularly in districts with good access to public transport and favorable living environments.

[Copyright The Jiji Press, Ltd.]

Jiji Press